68th OREGON LEGISLATIVE ASSEMBLY--1995 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 3-A-SS

                           C-Engrossed

                        Senate Bill 1156
                  Ordered by the House August 3
 Including Senate Amendments dated July 29 and House Amendments
                   dated August 1 and August 3

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of President Smith, Senator
  Walden)


                             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.

  Provides financing method for extension of light rail system.
  Defines terms.
  Establishes South North Construction Fund.
  Appropriates specified moneys from fund to Department of
Transportation for engineering, design and certain construction
and acquisition costs for first construction segment of South
North Line.
  Allows director of department to enter into grant agreements
with Tri-Met.
  Specifies that mass transit district must reimburse utility for
50 percent of relocation costs in certain circumstances.
  Requires annual allocations of lottery moneys, commencing July
1, 1999.
  Establishes Light Rail Bond Fund and appropriates moneys from
fund for payment of light rail lottery bonds.
  Prohibits issuance of light rail lottery bonds unless federal
matching funds are available for light rail project.
  Establishes Transportation Equity Account to finance
transportation projects outside of Portland metropolitan region.
  Prohibits moneys in account from being used to offset moneys
from State Highway Fund distributed to areas outside Portland
metropolitan region.
  Provides that moneys in Transportation Equity Account are
provided as described in this Act and from lottery revenues.
  Requires Tri-Met to conduct studies relating to alternative
funding sources that will reduce need in Portland metropolitan
region for state financial assistance and to long term funding of
operations and maintenance of South North Line.
  Requires Tri-Met to report findings of studies to Legislative
Assembly.
  Requires State Treasurer to examine procedures relating to use
of lottery bond financing for purpose of maximizing benefits to
state.
  Requires State Treasurer to report findings and make
recommendations to Legislative Assembly.
  Grants original and exclusive jurisdiction of challenges to
validity of this Act to Supreme Court.
  Adopts Columbia River Light Rail Transit Compact.
  Provides siting procedures for South North Line light rail
project. Provides procedures for review of land use decisions
made pursuant to siting of South North Line.
  Provides siting and other land use procedures for South North
MAX Light Rail Project. Limits authority of Land Conservation and
Development Commission to establish permissible land uses. Limits
authority of Department of Land Conservation and Development to
participate in or seek review of land use decisions. Establishes
criteria for siting dwellings in exclusive farm use areas.
  Modifies harvesting and reforestation requirements under Oregon
Forest Practices Act. Outlines rulemaking authority of State
Board of Forestry relating to Oregon Forest Practices Act.
Establishes conditions under which board shall not apply duly
adopted rule to operation.
  Limits adoption of transportation system development charges by
local government.
  Requires Metro to submit advisory question to electors
concerning continuance of South North light rail project.
  Requires Metro to report to Legislative Assembly on
implementation of South North rail line.
   { +  Establishes Light Rail Oversight Committee.
  Provides collaborative regional problem-solving process for
land use decisions.
  Grants immunity from civil action or criminal prosecution in
any matter relating to noise or noise pollution from shooting
range so long as owners, operators or lessees of range complied
with noise control laws at time construction began or no noise
control law was then existing. Prohibits court from enjoining
operation of shooting range on basis of noise if range complied
with applicable noise control laws at time construction began or
no noise control law was then existing.
  Directs State Fish and Wildlife Commission to issue permits for
activities to protect juvenile salmonids from cormorants.
  Appropriates moneys out of General Fund to State Department of
Fish and Wildlife for specified purpose. + }
    { - Allows employer to do electrical installations on
seasonal farmworker housing on farm property of employer without
obtaining license to make electrical installations. - }
  Establishes procedure that State Department of Agriculture must
follow before investigating confined animal feeding operation on
basis of complaint. Authorizes investigation at any time if
alleged violation presents threat to public health.   { - Imposes
civil penalty for making false material statement in written
complaint to department. - }
  Declares state preemption in field of pesticide sale and use.
    { - Modifies certain provisions relating to Portland
metropolitan area air quality maintenance plan. Directs that
Department of Environmental Quality design and implement
continuing public education program to reduce emissions in
Portland air quality maintenance area. Requires that department
explore potential for program to replace gasoline-fueled lawn
equipment in maintenance area with zero emission equipment. - }
  Limits expenditures.
    { - Vests exclusive authority to regulate sale, acquisition,
transfer, ownership, possession, storage, transportation and use
of firearms in Legislative Assembly. Permits cities and counties
to regulate or prohibit discharge of firearms within their
borders with specified exceptions. Permits cities and counties to
regulate or prohibit possession of loaded firearm in public
place.  Prohibits cities, counties or other municipal
corporations or districts from regulating or prohibiting
possession or sale of firearm in public building rented or leased
to person during term of lease. Permits cities to continue to
regulate purchase of used firearms by pawnshops. - }
    { - Exempts certain schools from mandatory merger
requirement.  Allows school district to request waiver of merger
requirements. - }
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to the activities regulated by state government;
  creating new provisions; amending ORS 197.717, 467.020,
  467.030, 480.355, 527.620, 527.630, 527.670, 527.687, 527.736,
  527.740, 527.745, 527.750, 527.755, 527.990 and 527.992;
  appropriating money; limiting expenditures; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  **************************** SECTION 1.  { + (1) The
Legislative Assembly finds that:
  (a) The development, acquisition and construction of light rail
systems and their attendant rights of way, equipment and
facilities in the urban and metropolitan areas of the State of
Oregon do and will accomplish the purpose of creating jobs and
furthering economic development in Oregon by, among other
advantages:
  (A) Providing an important element of the public infrastructure
that provides the basic framework for continuing and expanding
economic activity in this state;
  (B) Increasing the economy and efficiency of public
transportation, improving the attractiveness of urban and
metropolitan areas to new businesses and supporting the
operations and prosperity of existing businesses in those areas
by making those businesses more accessible to their customers and
employees;
  (C) Alleviating the inefficiencies of congestion and crowding
associated with, and reducing the burdens of expansion and
maintenance of, existing public transportation systems and
facilities, as well as reducing energy consumption and air
pollution fostered by the use of motor vehicles;
  (D) Creating employment opportunities in urban and metropolitan
areas through the funding of projects for the development and
construction of the light rail systems; and
  (E) Generating significant new state and local income tax
revenues through jobs and other economic development created by
construction and operation of the South North Line light rail
project.
  (b) Additionally, the provision of state and local moneys for
the proposed South North Line light rail project will encourage
the contribution of otherwise unavailable federal matching grant
moneys, the use of which will, for the reasons stated in
paragraph (a) of this subsection, forward the purpose of creating
jobs and furthering economic development in Oregon.
  (c) Based on the legislative findings described in this
section, the use of net proceeds from the operation of the state
lottery for the support of the South North Line light rail
project is an appropriate use of state lottery funds under
section 4, Article XV of the Oregon Constitution and ORS 461.510.
  (d) Payment of this state's share of the cost of expanding the
regional light rail system constitutes this state's primary
commitment to the funding from lottery revenues of economic
development projects in Clackamas, Multnomah and Washington
Counties with state lottery funds.
  (e) The development of light rail projects in Clackamas,
Multnomah and Washington Counties will reduce the need in those
counties for construction of new highways funded with state
highway funds.

  (f) It is the intent and policy of the Legislative Assembly to
ensure the funding and support of the South North Line light rail
project in the manner provided in sections 1 to 18 of this Act,
to the extent required for the state to realize the benefit of
all federal matching funds made available for that project, and
to the extent necessary to complete the project.
  (g) At the May 16, 1995, Special Election, the voters of the
State of Oregon approved Measure No. 21, an amendment to section
4, Article XV, Oregon Constitution, which requires the
appropriation of sufficient amounts from the net proceeds of the
State Lottery to pay lottery bonds before net proceeds of the
State Lottery may be appropriated for any other purpose.
  (h) In the autumn of 1995, the Congress of the United States
will commence its legislative process for authorizing various
mass transit projects throughout the nation, including the South
North Line. In order to be in a position to obtain the needed
commitment of federal matching funds for the South North Line, it
is necessary for this state to provide, prior to the commencement
of such federal legislative process, for the commitment of the
state lottery funds needed for this state's share of the costs of
the South North Line and to make provision for the prompt final
judicial resolution of all constitutional challenges to sections
1 to 18 of this Act.
  (2) The Legislative Assembly declares that the purpose of
sections 1 to 18 of this Act is to establish a state revenue bond
program to provide the state's share of the cost of the South
North Line. The bonds authorized by sections 1 to 18 of this Act
shall be revenue bonds only, and the obligation of the state with
respect to the bonds, including any interim financing
obligations, and with respect to any grant agreement or pledge
authorized by sections 1 to 18 of this Act shall at all times be
restricted to the availability of unobligated net lottery
proceeds, any appropriated funds and any other moneys lawfully
credited to the South North Construction Fund and the Light Rail
Bond Fund.  Neither the faith and credit of the state, nor any of
its taxing power, shall be pledged or committed to the payment of
bonds, including any interim financing obligations, or any grant
agreement, pledge or other commitment or covenant of the state
authorized by sections 1 to 18 of this Act. + }
  **************************** SECTION 2.  { + As used in
sections 1 to 18 of this Act, unless the context requires
otherwise:
  (1) 'Appropriated funds' for a particular fiscal year means the
funds specifically appropriated or otherwise specifically made
available by the Legislative Assembly or the Emergency Board, as
the case may be, acting in its sole discretion, in the fiscal
year to replenish reserves established as additional security for
light rail lottery bonds pursuant to the authority granted in
section 5 of this Act.
  (2) 'Dedicated lottery revenues' for a particular fiscal year
means an amount of unobligated net lottery proceeds equal to
$31.8 million until South North lottery bonds are sold and $43.8
million thereafter minus the amount of lottery revenues that are
required under ORS 391.125 (1) to be transferred in that fiscal
year to the Regional Light Rail Extension Bond Account for the
purpose of paying when due the principal of and interest on the
Westside lottery bonds.
  (3) 'Department' means the Department of Transportation.
  (4) 'Director' means the Director of Transportation of the
State of Oregon.
  (5) 'Financing obligations' means any bonds, notes, commercial
paper or other obligations for money borrowed issued by or on
behalf of Tri-Met for the purpose of financing any of the costs
of designing, acquiring, constructing and equipping the South
North Line, including the obligations of Tri-Met under any
municipal bond insurance policy, letter of credit, line of
credit, surety bond or other credit enhancement or liquidity
device given to secure or provide liquidity for any such bonds,
notes, commercial paper or other obligations.
  (6) 'Grant agreement' means any agreement entered into by the
director and Tri-Met pursuant to section 3 (2) of this Act.
  (7) 'Light Rail Bond Fund' means the account created pursuant
to section 6 of this Act.
  (8) 'Light rail lottery bonds' means:
  (a) Any refunding lottery bonds;
  (b) All South North lottery bonds; and
  (c) Any bonds issued to refund any of the bonds described in
paragraph (a) or (b) of this subsection.
  (9) 'Metro' means the metropolitan service district created
under ORS chapter 268 and exercising home rule charter powers.
  (10) 'Refunding lottery bonds' means any bonds issued for the
purpose of refunding any Westside lottery bonds.
  (11) 'South North Line' means the line extending Tri-Met's
regional light rail system between the vicinity of the
intersection of SE Sunnyside Road and I-205 in Clackamas County,
Oregon, to Clark County, Washington, including each phase and
each segment thereof and all portions thereof located within and
without the State of Oregon, as set forth in the Regional
Transportation Plan adopted by Metro as such plan may be amended
from time to time. + }
   { +  (12) 'South North lottery bonds' means the bonds
authorized to be issued under section 5 (1) of this Act for the
purposes of funding essential transportation projects through the
Transportation Equity Account established under section 11 of
this Act and of funding the state's share of the cost of the
South North Line. The term includes any interim financing
obligations issued to provide interim financing for this state's
share of the costs of the South North Line pending the issuance
of long-term South North lottery bonds.
  (13) 'Tri-Met' means the Tri-County Metropolitan Transportation
District of Oregon, a mass transit district created under ORS
chapter 267.
  (14) 'Unobligated net lottery proceeds' means all revenues
derived from the operation of the state lottery except for:
  (a) The revenues used for the payment of prizes and the
expenses of the state lottery as provided in section 4 (4)(e),
Article XV of the Oregon Constitution, ORS 461.500 (2) and
461.510 (3) and (4);
  (b) The revenues required to be applied, distributed or
allocated as provided in ORS 461.543; and
  (c) The revenues allocated to the Regional Light Rail Extension
Construction Fund pursuant to ORS 391.140 that are required under
ORS 391.125 (1) to be transferred to the Regional Light Rail
Extension Bond Account for the purpose of paying when due the
principal of and interest on the Westside lottery bonds.
  (15) 'Westside lottery bonds' means the bonds issued by the
state pursuant to the authority granted in ORS 391.140, but not
including any refunding lottery bonds.
  (16) 'Portland metropolitan region' means the area within the
urban growth boundary established by Metro as that boundary
existed on July 1, 1995. + }
  **************************** SECTION 3.  { + (1) The South
North Construction Fund, separate and distinct from the General
Fund, is established in the State Treasury. The following funds
are appropriated continuously to the Department of
Transportation, and may be expended by the department for the
purposes of paying the costs of the preliminary engineering,
final design, advanced right of way acquisition or construction
and acquisition of equipment and facilities of the South North
Line:
  (a) All moneys on deposit from time to time in the South North
Construction Fund, including investment earnings thereon; and
  (b) All dedicated lottery revenues in a particular fiscal year
that are not required to be deposited into the Light Rail Bond
Fund pursuant to section 6 (1) of this Act for the purpose of
paying the principal of and interest on the light rail lottery
bonds coming due in such fiscal year, including any such
dedicated lottery revenues that are required to be, but have not
yet been, transferred to the South North Construction Fund.
Moneys in the South North Construction Fund may be expended for
South North Line purposes by application of such moneys to pay
amounts committed to be paid under all grant agreements entered
into between the Director of Transportation and Tri-Met pursuant
to this section and the expenses of the department in
administering the South North Construction Fund and the Light
Rail Bond Fund. If required to pay principal of or interest on
light rail bonds as those obligations become due and payable,
moneys in the South North Construction Fund may be transferred to
the Light Rail Bond Fund for the purpose of making such payments.
Interest and earnings received on moneys credited to the South
North Construction Fund shall accrue to and become part of the
South North Construction Fund. Interest and earnings received on
moneys credited to the Light Rail Bond Fund shall accrue to and
become part of the Light Rail Bond Fund.
  (2) The director may enter into grant agreements with Tri-Met
that commit the department to pay anticipated funds from the
South North Construction Fund to Tri-Met for the purpose of
financing the costs of the first construction segment of the
South North Line, including servicing any financing obligations,
which grant agreements may, subject to the provisions of this
section, provide for the remittance of such funds on such
periodic basis, in such amounts, over such period of years and
with such priority over other commitments of such funds as the
director shall specify in the grant agreements. The total amount
committed under such grant agreements shall be limited to the
amount of $375 million that may be made available to pay the
costs of the first construction segment of the South North Line
exclusive of the department's administrative expenses.
Notwithstanding any other provision of law to the contrary, such
grant agreements may provide for the remittance to Tri-Met of
funds from the South North Construction Fund at the earliest
possible dates upon which such funds are available to the
department and are needed by Tri-Met to pay the costs of the
South North Line, all without regard to any specified percentage
of the state's share of the total South North Line project costs
or the proportion of funds theretofore advanced, or to be then
advanced, from the South North Construction Fund in relation to
the funds advanced from other federal, state or local sources to
pay South North Line project costs. Any such grant agreements,
when executed by the director and accepted by Tri-Met, shall be
solely conditioned upon actual funds available in the South North
Construction Fund and shall be valid, binding and irrevocable in
accordance with its terms, subject only to the availability of
funds in the South North Construction Fund.  Tri-Met may pledge
its right to receive moneys under any grant agreement as security
for any financing obligations issued to finance any of the costs
of designing, acquiring, constructing and equipping the South
North Line, which pledge shall be valid and binding upon Tri-Met,
the department and all other persons from the date made, the
rights so pledged shall be immediately subject to the lien of
such pledge without physical delivery, filing or other act, and
the lien of such pledge shall be superior to all other claims and
liens of any kind whatsoever. Upon notice from Tri-Met that it
has so pledged its right to receive moneys under any grant
agreement, the department shall fully cooperate with Tri-Met and
the pledgee to give effect to such pledge, including but not
limited to acknowledging in writing to Tri-Met and the pledgee
the existence and validity of such pledge and agreeing to the
payment of any moneys due under the terms of the subject grant
agreement into such custodian account or accounts as shall be
specified under the terms of such pledge.
  (3) Notwithstanding any grant agreement entered into by the
director under subsection (2) of this section, no moneys shall be
expended from the South North Construction Fund for the
preliminary engineering, final design, advanced right of way
acquisition or construction and acquisition of any segment of the
South North Line unless the director determines:
  (a) That all state and local approvals are in place for the
segment of the South North Line for which funding is being
sought;
  (b) That assurances are in place for obtaining all moneys,
other than moneys for which the determination is being made,
necessary to enable completion of the segment of the South North
Line for which funding is being sought and that Tri-Met has
agreed to provide an amount of money at least equal to that being
provided by the South North Construction Fund to pay the costs of
the segment of the South North Line for which funding is being
sought;
  (c) With respect to the segment of the South North Line for
which funding is being sought, that the body of local officials
and state agency representatives designated by Metro and known as
the Joint Policy Advisory Committee on Transportation has
certified that the segment of the South North Line is a regional
priority; and
  (d) With respect to construction of any segment of the South
North Line, the elements of the project that are designated for
state participation and an estimated total amount of the state's
funding obligation.
  (4) When the actual expenditures for a segment of the South
North Line fall short of the estimated expenditures for such
segment, those moneys that are not required for that segment of
the project shall remain in the South North Construction Fund for
use in completing other segments of the South North Line.
  (5) On or before August 31 in each year, the director shall
certify to the Governor and the State Treasurer whether or not
there existed, as of the end of the immediately preceding fiscal
year, an unobligated balance of dedicated lottery revenues in the
South North Construction Fund. If the director certifies that
there existed such an unobligated balance of dedicated lottery
revenues, an amount equal to the unobligated balance of such
dedicated lottery revenues as of the end of the immediately
preceding fiscal year shall revert to the Executive Department
Economic Development Fund created by ORS 461.540, and the State
Treasurer shall credit such amount to that fund on or before the
September 15 next following the date of the certification by the
director.
  (6) The director shall certify the unobligated balance of
dedicated lottery revenues in the South North Construction Fund,
and that unobligated balance of dedicated lottery revenues shall
revert to the Executive Department Economic Development Fund if
the director determines that the South North Line has been
completed and such project has been accepted by the department,
and all claims, suits and actions arising out of such project
that could create a liability payable out of the moneys in the
South North Construction Fund have been resolved.
  (7) For purposes of subsections (5) and (6) of this section,
dedicated lottery revenues in the South North Construction Fund
shall be obligated to the extent such moneys are needed to fund
the amounts committed to be paid in the current or any future
fiscal year under any grant agreement entered into by the
director under subsection (2) of this section, to pay debt
service on any light rail lottery bonds or to pay the expenses of
the department in administering the South North Construction Fund
and the Light Rail Bond Fund.
  (8) The department may deduct from the South North Construction
Fund the costs associated with administering the South North
Construction Fund and the Light Rail Bond Fund. + }
  **************************** SECTION 4.  { + (1) Subject only
to the availability of unobligated net lottery proceeds, in each
fiscal year beginning with the fiscal year commencing July 1,
1999, there shall be allocated from the Executive Department
Economic Development Fund created by ORS 461.540 an amount of
unobligated net lottery proceeds that will equal:
  (a) The dedicated lottery revenues for such fiscal year; plus
  (b) Such additional amount as shall be required to restore
withdrawals from any reserve account for light rail lottery bonds
established pursuant to the authority granted in section 6 (1) of
this Act to the extent such withdrawals result in the amount on
deposit in such reserve account being less than the amount the
state has covenanted to maintain therein.
  (2) The amounts of unobligated net lottery proceeds allocated
from the Executive Department Economic Development Fund pursuant
to this section shall be transferred as follows and in the order
of priority indicated:
  (a) First, there shall be transferred to the Light Rail Bond
Fund the portion of such unobligated net lottery proceeds that,
when added to any amounts then on deposit in the Light Rail Bond
Fund that are available for such purpose, will be sufficient to
pay all amounts of principal and interest coming due during that
fiscal year on all outstanding light rail lottery bonds;
  (b) Second, to the extent any deficiency exists with respect to
any reserve account established as additional security for any
light rail lottery bonds and such deficiency has not theretofore
been cured by appropriated funds, there shall be transferred to
such reserve account such portion of such unobligated net lottery
proceeds as shall be required to cure the remaining deficiency;
and
  (c) Third, the balance, if any, of such unobligated net lottery
proceeds shall be transferred to the South North Construction
Fund.
  (3) The annual amounts of unobligated net lottery proceeds
required to be transferred to the South North Construction Fund
under subsection (2)(c) of this section and all other moneys
deposited in the South North Construction Fund, together with all
investment earnings on all amounts on deposit from time to time
in the South North Construction Fund, are continuously
appropriated only for the purposes of funding the South North
Line by application of such moneys to the payment of amounts
committed to be paid under grant agreements entered into between
the Director of Transportation and Tri-Met pursuant to section 3
of this Act and to pay the expenses of the Department of
Transportation in administering the South North Construction Fund
and the Light Rail Bond Fund. The annual amounts of unobligated
net lottery proceeds required to be transferred to the Light Rail
Bond Fund under subsection (2)(a) of this section or to any
reserve account under subsection (2)(b) of this section and all
other moneys deposited in the Light Rail Bond Fund, together with
all investment earnings on all amounts on deposit from time to
time in the Light Rail Bond, are continuously appropriated only
for the purposes of paying when due the principal of and interest
on the outstanding light rail lottery bonds.
  (4) In accordance with section 4 (4), Article XV, Oregon
Constitution, and notwithstanding any other provision of law, the
annual allocation of unobligated net lottery proceeds made by
subsection (1) of this section and the transfers thereof required
to be made by subsection (2) of this section shall be satisfied
and credited from the first unobligated net lottery proceeds
received by the state before any other allocation, appropriation
or disbursement of the unobligated net lottery proceeds is made
in such fiscal year.
  (5) The transfer of unobligated net lottery proceeds to the
Light Rail Bond Fund and the South North Construction Fund
authorized by this section shall cease when the director
certifies in writing that transfers of moneys under this section
no longer are necessary because:
  (a) Moneys in the Light Rail Bond Fund and in the South North
Construction Fund are sufficient for the payment in full of all
amounts owing under all outstanding light rail lottery bonds and
all grant agreements entered into between the director and
Tri-Met under section 3 of this Act and for the payment in full
of the expenses of the department in administering the Light Rail
Bond Fund and the South North Construction Fund; and
  (b) The South North Line has been completed and such project
has been accepted by the department, and all claims, suits and
actions arising out of such project that could create a liability
payable out of the moneys in the Light Rail Bond Fund or the
South North Construction Fund have been resolved. The director
shall deliver a copy of such certificate to the Governor and the
State Treasurer.
  (6) Upon receipt of the director's written certification
pursuant to subsection (5) of this section that transfer of
dedicated lottery revenues to the Light Rail Bond Fund and the
South North Construction Fund under this section is no longer
necessary, the State Treasurer shall thereafter credit dedicated
lottery revenues received by the Light Rail Bond Fund or the
South North Construction Fund under this section to the Executive
Department Economic Development Fund. + }
  **************************** SECTION 5.  { + (1) In accordance
with any applicable provisions of ORS chapters 286 and 288, the
State Treasurer, at the request of the Director of
Transportation, may issue South North lottery bonds for the
purpose of financing this state's share of the costs of the South
North Line, including the refunding of any interim financing
obligations. South North lottery bonds issued under this section
may include interim financing obligations for the purpose of
providing interim financing for this state's share of the costs
of the South North Line pending the issuance of long-term South
North lottery bonds. Such interim financing obligations may take
the form of notes, commercial paper or other obligations. To
secure interim financing obligations, this state may pledge the
proceeds of South North lottery bonds and the proceeds of interim
financing obligations authorized by sections 1 to 18 of this Act.
For the purpose of financing grants authorized by section 3 of
this Act and funding of the Transportation Equity Account as
provided in section 11 of this Act, South North lottery bonds may
be issued from time to time in one or more series in an aggregate
amount not to exceed:
  (a) The principal sum of $490 million; plus
  (b) An amount equal to the costs incurred in connection with
the issuance of the South North lottery bonds and other
administrative expenses of the State Treasurer and the department
in connection with the issuance of the South North lottery bonds;
plus
  (c) The amount of any reserves determined to be necessary or
advantageous in connection with the South North lottery bonds;
plus
  (d) The amount needed to pay for the cost of acquiring any
municipal bond insurance policy, letter of credit, line of
credit, surety bond or other credit enhancement device obtained
for the purpose of providing additional security or liquidity for
the South North lottery bonds.
  (2) The director shall submit to the State Treasurer from time
to time written requests to issue the South North lottery bonds
as provided in subsection (1) of this section in amounts
sufficient to provide in a timely fashion the moneys required to
fund the obligations of the department under any grant agreements
entered into under section 3 of this Act for the purpose of
financing the state share of the costs of the South North Line.
  (3) Moneys received from the issuance of South North lottery
bonds, including any investment earnings thereon, may be expended
only for the purpose of:
  (a) Financing the costs of development, acquisition and
construction of the South North Line, including paying debt
service on any financing obligations or refunding any interim
financing obligations issued under subsection (1) of this
section;
  (b) Paying the costs of issuing the South North lottery bonds
and other administrative expenses of the State Treasurer in
carrying out the provisions of section 6 of this Act and this
section;
  (c) Funding any reserves determined to be necessary or
advantageous in connection with such South North lottery bonds;
and
  (d) Paying the cost of acquiring any municipal bond insurance
policy, letter of credit, line of credit, surety bond or other
credit enhancement device obtained for the purpose of providing
additional security or liquidity for the South North lottery
bonds and funding of the Transportation Equity Account as
provided in section 11 of this Act.
  (4) In addition to the South North lottery bonds authorized to
be issued under this section, the State Treasurer is hereby
authorized, at the request of the director, to issue from time to
time one or more series of refunding lottery bonds for the
purpose of refunding in whole or in part any outstanding Westside
lottery bonds or South North lottery bonds. Such refunding
lottery bonds shall be issued in such amount as the State
Treasurer shall determine is necessary or appropriate in order
to:
  (a) Pay or defease the principal of, redemption premium, if
any, and interest on the bonds to be refunded thereby;
  (b) Pay the costs of issuing the refunding lottery bonds and
other administrative expenses of the State Treasurer in issuing
such bonds;
  (c) Fund any reserves determined to be necessary or
advantageous in connection with such refunding lottery bonds; and
  (d) Pay the cost of acquiring any municipal bond insurance
policy, letter of credit, line of credit, surety bond or other
credit enhancement device obtained for the purpose of providing
additional security or liquidity for the refunding lottery bonds.
  (5) All light rail lottery bonds issued under this section
shall be payable from:
  (a) The unobligated net lottery proceeds pledged thereto as
provided in subsection (7) of this section;
  (b) Any appropriated funds; and
  (c) The moneys and investments on deposit from time to time in
the Light Rail Bond Fund and any reserve account established as
additional security for the light rail lottery bonds. The light
rail lottery bonds shall not be a general obligation of this
state, and shall not be secured by or payable from any funds or
assets of this state other than the unobligated net lottery
proceeds and any appropriated funds and other moneys and
investments on deposit from time to time in the Light Rail Bond
Fund. In no circumstance shall the state be obligated to pay
amounts due under any light rail lottery bonds issued under this
section from any source other than unobligated net lottery
proceeds and the appropriated funds and other moneys and
investments on deposit from time to time in the Light Rail Bond
Fund. With the exception of available unobligated net lottery
proceeds, in no event shall the Legislative Assembly be under any
legal compulsion or obligation to appropriate or expend any other
funds for the purpose of paying any amounts owing on any light
rail lottery bonds. All light rail lottery bonds issued under
this section shall contain a statement that this state shall not
be obligated to pay bond principal, or interest thereon, from any
source other than unobligated net lottery proceeds and the
appropriated funds and other moneys and investments on deposit
from time to time in the Light Rail Bond Fund, and that the faith
and credit or the taxing power of the State of Oregon is not
pledged to the payment of the bond principal or interest thereon.
  (6) If any light rail lottery bonds are secured by reserves,
either in the form of cash, investments, surety bonds, municipal
insurance, lines of credit, letters of credit or other similar
instruments, that the state has covenanted to maintain at
particular levels, and the reserves are drawn down below the
level which the state has covenanted to maintain, the director
shall promptly certify to the Legislative Assembly or, if the
Legislative Assembly is not then in session, to the Emergency
Board, the amount needed to restore the reserves to their
required level. The Legislative Assembly or the Emergency Board,
as the case may be, may provide appropriated funds in the amount
certified by the director. Any appropriated funds so provided
shall be used immediately to restore the balance in the reserves
established for the light rail lottery bonds. The director may
enter into covenants with the owners of the light rail lottery
bonds that specify the timing and content of the director's
certification. By enacting this subsection, the Legislative
Assembly acknowledges its current intention to provide
appropriated funds in the amount certified by the director
pursuant to this subsection. However, neither the Legislative
Assembly nor the Emergency Board shall have any legal obligation
to provide appropriated funds.
  (7) Notwithstanding ORS 288.855 or any other provision of law,
all light rail lottery bonds, regardless of whether issued in one
or more issues, shall be secured by a pledge of and lien on the
unobligated net lottery proceeds and amounts in the Light Rail
Bond Fund. The lien of such pledge shall be valid and binding
immediately upon issuance of the light rail lottery bonds secured
thereby. The unobligated net lottery proceeds and amounts in the
Light Rail Bond Fund shall be immediately subject to the lien of
such pledge upon receipt of the unobligated net lottery proceeds
by the state regardless of when or whether they are allocated or
transferred to the Light Rail Bond Fund and without physical
delivery, filing or other act. The lien of such pledge of
unobligated net lottery proceeds and amounts in the Light Rail
Bond Fund shall be superior to all other claims, liens and
appropriations of any kind whatsoever. In connection with the
issuance of any light rail lottery bonds, the State Treasurer
shall have the authority and discretion to provide that:
  (a) All light rail lottery bonds, regardless of series or time
of issuance, shall be equally and ratably secured by the lien of
the pledge of unobligated net lottery proceeds and amounts in the
Light Rail Bond Fund established pursuant to this section 6 of
this Act; or
  (b) The light rail lottery bonds of one or more particular
series shall be secured by the lien of such pledge on a basis
that is prior and superior, or inferior and subordinate, to the
lien of such pledge securing one or more other series of light
rail lottery bonds.
  (8) The State of Oregon hereby makes the covenants set forth in
paragraphs (a) to (d) of this subsection with and for the benefit
of the owners from time to time of the light rail lottery bonds.
The covenants shall constitute a contract with such owners:
  (a) Except as authorized in subsection (7) of this section with
respect to the lien of the pledge of unobligated net lottery
proceeds that secures light rail lottery bonds, the state shall
not create any lien or encumbrance on the unobligated net lottery
proceeds that is equal or superior to the lien created by
subsection (7) of this section;
  (b) Subject only to the availability of unobligated net lottery
proceeds, the state shall budget and appropriate in each fiscal
year an amount of unobligated net lottery proceeds that, when
added to other funds lawfully budgeted and appropriated and
available for such purpose, will be sufficient to pay in full the
principal and interest due and to become due in such fiscal year
on all outstanding light rail lottery bonds and maintain the
required balance in any reserves established for light rail
lottery bonds, and will apply the unobligated net lottery
proceeds and any other amounts so budgeted and appropriated to
the payment of such principal and interest when due and the
maintenance of such reserves;
  (c) On or before the maturity date of any interim financing
obligations issued under this section, the State of Oregon shall
issue light rail lottery bonds or refunding interim financing
obligations in an amount that, when added to other amounts
available for such purpose, shall be sufficient to pay all
amounts coming due on the outstanding interim financing
obligations on such maturity date; and
  (d) Until such time as all light rail lottery bonds have been
paid in full or provision for such payment has been made by means
of a defeasance in accordance with ORS 288.677, the state will
continue to operate the lottery in accordance with the
requirements of section 4, Article XV of the Oregon Constitution
as in effect on the date of issuance of the light rail lottery
bonds.
  (9) The moneys in the Light Rail Bond Fund shall be used and
applied by the director to pay when due the principal of and
interest on any light rail lottery bonds issued under this
section.
  (10) The interest on all light rail lottery bonds issued under
this section and on any refunding and advance refunding bonds
issued under ORS 286.051 for the purpose of refunding any light
rail lottery bonds is exempt from personal income taxation
imposed by this state under ORS chapter 316.
  (11) In connection with the issuance of any light rail lottery
bonds, the State Treasurer may establish such accounts and
subaccounts within the South North Construction Fund and the
Light Rail Bond Fund and may establish such other funds, accounts
and subaccounts as the State Treasurer shall determine are
necessary or appropriate. The net proceeds derived from the
issuance and sale of the South North lottery bonds issued under
this section to finance the costs of the South North Line shall
be deposited in the South North Construction Fund and disbursed
upon the written request of the director for the purpose of
funding the department's obligations under any grant agreements
entered into with Tri-Met pursuant to section 3 of this Act. If
any South North lottery bonds, including any interim financing
obligations, are issued for the purpose of refunding any interim
financing obligations previously issued, the net proceeds derived
from the issuance and sale of such refunding South North lottery
bonds or interim financing obligations shall be deposited in the
Light Rail Bond Fund and used to pay when due the interim
financing obligations so refunded.
  (12) If, at the time of issuance of any light rail lottery
bonds, a municipal bond insurance policy, letter of credit, line
of credit, surety bond or other credit enhancement device is
available as additional security for the light rail lottery bonds
or any portion thereof at a cost effective price, the State
Treasurer may acquire such municipal bond insurance policy,
letter of credit, line of credit, surety bond or other credit
enhancement device in order to provide additional security for
the bonds or portion thereof. + }
  **************************** SECTION 6.  { + (1) The Light Rail
Bond Fund is created as a fund separate and distinct from the
General Fund. In connection with the issuance of any light rail
lottery bonds, the State Treasurer may establish such reserves as
are deemed necessary or appropriate in order to provide
additional security therefor, which reserves shall be held to the
credit of an appropriate account of the Light Rail Bond Fund. The
State Treasurer may provide that all or any portion of the Light
Rail Bond Fund, or any account therein, shall be held by a
trustee, and may enter into agreements with the trustee regarding
the use and application of the amounts held in the Light Rail
Bond Fund and accounts therein. Subject only to the availability
of unobligated net lottery proceeds, in each fiscal year in which
any amounts of principal or interest are due and payable on any
light rail lottery bonds, there shall be transferred to the Light
Rail Bond Fund or the appropriate reserve account therein the
amounts of unobligated net lottery proceeds required by section 4
(2)(a) and (b) of this Act, the net proceeds of any light rail
lottery bonds or interim financing obligations issued for the
purpose of refunding any outstanding interim financing
obligations and any appropriated funds.
  (2) All moneys on deposit from time to time in the Light Rail
Bond Fund together with all investment earnings thereon, are
continuously appropriated to the payment of the light rail
lottery bonds. All investment earnings on moneys on deposit from
time to time in the Light Rail Bond Fund shall be retained in
that account and applied to pay the principal of and interest on
the light rail lottery bonds. + }
  **************************** SECTION 7.  { + (1) Subject to ORS
chapter 279 and any applicable prohibitions against preferences
in contracts related to the construction phase of the South North
Line, the managing agencies shall develop procedures that afford
qualified businesses in Oregon the opportunity to compete for
project contracts to the maximum extent feasible and consistent
with federal laws and regulations governing Federal Transit
Administration grants.
  (2) The managing agencies shall seek the cooperation and
assistance of contracting and construction associations in this
state when establishing the contracting procedures for the South
North Line. The managing agencies shall also establish and
implement programs to provide contracting and construction
businesses with information relating to the project.
  (3) The managing agencies, to the maximum extent feasible,
shall encourage disadvantaged business enterprises to bid for
contracts and to otherwise participate in the construction of the
South North Line. + }
  **************************** SECTION 8.  { + Notwithstanding
any other provision of law, nothing shall prevent the Legislative
Assembly from subsequently dedicating other moneys to be
deposited in the South North Construction Fund to be used to pay
for the costs of the South North Line, including but not limited
to moneys derived from:
  (1) The sale of property, interests in property or development
rights, including the sale of concession rights and franchises;
  (2) Gifts, donations, grants, equity contributions, royalties,
concession fees, franchise fees or other fees, taxes,
impositions, revenues, tolls, charges, assessments, levies,
surcharges, impositions, duties, tariffs or other revenues; or
  (3) Moneys that under an agreement with any governmental unit
or private person or entity, are required to be deposited in the
South North Construction Fund. + }
  **************************** SECTION 9.  { + (1) When location,
construction, relocation, reconstruction, maintenance or repair
of the South North Line requires a utility to relocate any of its
facilities that are located in a public right of way, the mass
transit district that constructs or operates the light rail
system shall reimburse the utility for 50 percent of the costs
and expenses incurred by the utility in relocating the
facilities.
  (2) As a condition of reimbursement, a district may require a
utility to participate in preparation of the federal grant
application and determine the cost and expense of relocation. The
utility and the district shall agree upon the manner and amount
of reimbursement.
  (3) As used in this section, 'utility' has the meaning given
that term in ORS 366.332. + }
  **************************** SECTION 10.  { + Notwithstanding
section 5 of this Act, the State Treasurer shall not issue any
light rail lottery bonds authorized by section 5 of this Act
unless, on or before the date of issuance of the bonds, federal
matching funds have been made available for the first
construction segment of the South North Line light rail
project. + }
  **************************** SECTION 11.  { + (1) The
Transportation Equity Account, separate and distinct from the
General Fund, is established in the State Treasury. Moneys in the
account, including all investment earnings thereon and any
revenues generated from state income taxes resulting from
construction of the South North Line, as estimated in section 11a
of this Act, are appropriated continuously to the Department of
Transportation for the purpose of paying the costs of
transportation projects located outside of the Portland
metropolitan region. Moneys allocated from the Transportation
Equity Account shall not be used to offset moneys distributed
from the State Highway Fund for areas outside the Portland
metropolitan region.
  (2) The Transportation Equity Account shall consist of:
  (a) Moneys provided to the account from sources described in
sections 12 and 14 of this Act pursuant to an intergovernmental
agreement among the Department of Transportation, Tri-Met, Metro
and other participating local governments.
  (b) Proceeds of the sale of South North lottery bonds as
provided in this section.
  (3) Upon the initial sale of South North lottery bonds, there
shall be transferred to the Transportation Equity Account the sum
of $115 million obtained from the sale of the South North lottery
bonds.
  (4) The moneys in the Transportation Equity Account under
subsection (3) of this section, together with all investment
earnings on the amounts on deposit from time to time in the
account, are continuously appropriated only for the purpose of
distributing such moneys to cities and counties under section 15
of this Act for financing the costs of essential transportation
projects.
  (5) As used in sections 11 to 16 of this Act, 'essential
transportation projects' means capital projects for or operation
of any land, air or water mode of transporting people and goods,
including but not limited to improvements, facilities, equipment,
structures and rolling stock used or useful in connection with
streets, roads, highways, air transport, water transport, rail
transport, bus transport, bicycles and pedestrians. + }
  **************************** SECTION 11a.  { + (1) The Oregon
Department of Administrative Services shall certify an estimate
of the amount of state income tax revenues projected to be
collected from income generated by the designing, acquiring,
constructing and equipping of the South North Line. This estimate
shall include an amount for incomes secondarily generated by the
incomes directly earned. The Oregon Department of Administrative
Services shall formulate the estimate by generally accepted
estimation methodologies and with the best available data.
  (2) A certified estimate as described in subsection (1) of this
section shall be included in each budget report prepared by the
Governor under ORS 291.202. The estimate shall reflect projected
state income tax revenues for the coming biennium.

  (3) The amount certified under subsection (2) of this section
shall be appropriated out of the General Fund to the
Transportation Equity Account for the biennium covered in the
budget report.
  (4) Additional appropriations out of the General Fund shall be
made, if necessary, until a total amount of $375 million has been
made available for distribution to cities and counties from all
sources described in sections 11, 11a, 12 and 14 of this Act. + }
  **************************** SECTION 12.  { + Subject to
receipt of the federal funding commitment for the South North
Line project, Tri-Met, Metro and the other participating local
governments shall make, or take such actions within their power
to make arrangements for, the following payments into the
Transportation Equity Account pursuant to the intergovernmental
agreement described in section 11 (2)(a) of this Act:
  (1) In each fiscal year during the period beginning July 1,
1999, and ending June 30, 2004, $8 million shall be paid into the
Transportation Equity Account as follows:
  (a) $6 million shall be provided in accordance with federal law
from federal transportation funds, commonly known as STP Flexible
Funds, made available to the Portland metropolitan region through
state or regional transportation improvement programs for capital
projects and that would otherwise have been requested and
received by Tri-Met; and
  (b) The participating local governments shall jointly provide
$2 million from lottery moneys distributed to them under ORS
461.547 or other laws or from other discretionary funds available
to the participating local governments. Such local governments
may not provide this amount from transportation system
development charges or transportation impact fees and may not
increase such charges or fees to fund projects that would
otherwise have been funded by the moneys transferred to the
Transportation Equity Account.
  (2) In each fiscal year during the period beginning July 1,
2004, and ending June 30, 2009, $7 million shall be paid into the
Transportation Equity Account as follows:
  (a) $5 million shall be provided in accordance with federal law
from federal transportation funds, commonly known as STP Flexible
Funds, made available to the Portland metropolitan region through
state or regional transportation improvement programs for capital
projects and that would otherwise have been requested and
received by Tri-Met; and
  (b) Participating local governments shall jointly provide $2
million from lottery moneys distributed to them under ORS 461.547
or other laws or from other discretionary funds available to the
participating local governments. Such local governments may not
provide this amount from transportation system development
charges or transportation impact fees and may not increase such
charges or fees to fund projects that would otherwise have been
funded by the moneys transferred to the Transportation Equity
Account. + }
  **************************** SECTION 13.  { + The allocation of
lottery bond proceeds by the State of Oregon for the South North
Line project in the fiscal years beginning July 1, 1999, is
subject to the execution of an intergovernmental agreement among
the Department of Transportation, Tri-Met, Metro and other
participating local governments that:
  (1) To the fullest extent permitted by law, irrevocably commits
the moneys described in section 12 of this Act to the
Transportation Equity Account; and
  (2) Sets forth the administrative procedures for paying and
disbursing moneys into and from the Transportation Equity
Account. + }
  **************************** SECTION 14.  { + (1) Tri-Met, in
cooperation with Metro and the Joint Policy Advisory Committee on
Transportation of Metro, shall study, consider and develop
innovative transportation funding methods that may be used by
Tri-Met, Metro and Clackamas, Multnomah and Washington Counties
to reduce the need in the Portland metropolitan region for
long-term transportation funding by the State of Oregon.
  (2) Tri-Met shall establish a public-private task force that
shall:
  (a) Identify and evaluate alternative funding sources or
methods to reduce the need of the Portland metropolitan region
for long-term transportation financing assistance from the State
of Oregon.
  (b) Consider innovative public-private funding mechanisms to
capture the value created by transportation projects. + }
   { +  (c) Prepare findings that assess the financial,
administrative and policy effects of various transportation
funding sources or methods.
  (d) Prepare a report describing the findings of the task force
and containing recommendations concerning transportation funding
and the legal and administrative changes necessary to allow
creation or appropriate use of recommended funding sources or
methods.
  (3) Tri-Met, in cooperation with Metro and the Joint Policy
Advisory Committee on Transportation of Metro, shall consider the
report prepared under subsection (2) of this section and
recommend new transportation funding sources and methods for the
Portland metropolitan region to the Sixty-ninth Legislative
Assembly. The recommendations may include a proposal for
distributing to the Transportation Equity Account state personal
income tax revenues that are attributable to increased employment
or higher wages resulting from the South North Line project.
  (4) Subject to enactment of legislation by the Sixty-ninth
Legislative Assembly that grants power to Tri-Met and other local
governments in the Portland metropolitan region to use new
sources and methods for funding transportation, Tri-Met, in
accordance with the provisions of such enacted legislation, shall
assume the obligation to use the new funding authority to either:
  (a) Provide not more than $75 million to the Transportation
Equity Account during the construction of the South North Line;
or
  (b) Agree to reduce the obligation of the State of Oregon to
finance the costs of the South North Line project by not more
than $75 million.
  (5) In addition to the other requirements of this section,
Tri-Met shall conduct a study relating to the long-term funding
of the operations and maintenance of the South North Line. Upon
completion of the study, Tri-Met shall prepare a report that
contains the findings and conclusions of the study,
recommendations for long-term funding of the light rail line and
any proposals for needed legal or administrative changes. A copy
of the report shall be submitted to the Seventy-first Legislative
Assembly. + }
  **************************** SECTION 15.  { + (1) Beginning
with the fiscal year commencing July 1, 1999, there shall be
distributed in each fiscal year to the cities and counties
located wholly or partly outside the Portland metropolitan region
for the purpose of financing essential transportation projects
all moneys credited to the Transportation Equity Account by the
State Treasurer during that fiscal year. Except as provided in
subsection (4) of this section, the moneys distributed under this
section shall be allocated 60 percent to counties and 40 percent
to cities.
  (2) The sum designated in subsection (1) of this section shall
be remitted by warrant to the county treasurers of the several
counties. The remittance in any year shall be in proportion of
the number of vehicles, trailers, semitrailers, pole trailers and
pole or pipe trailers registered in each county, to the total
number of such vehicles registered in the state as of December 31
of the preceding year, as indicated by motor vehicles
registration records. All such vehicles owned and operated by the
state and registered under ORS 805.040, 805.045 and 805.060 shall
be excluded from the computation in making the apportionment. For
purposes of this subsection, vehicles, trailers and semitrailers
registered within the Portland metropolitan region shall not be
counted when determining the amount of money to be distributed to
a county under this section.
  (3) The sum designated in subsection (1) of this section shall
be allocated to cities so that each city shall receive such share
of the moneys as its population bears to the total population of
all of the cities receiving moneys under this section. The moneys
shall be remitted to the financial officer of each city.
  (4) In each year in which moneys are distributed to counties
under this section, $1.5 million from the moneys in the
Transportation Equity Account that would otherwise be distributed
to counties under subsections (1) and (2) of this section shall
be set up in a separate account to be administered by the
Department of Transportation for the counties. Moneys from the
account shall be used for essential transportation projects. The
department shall enter into agreements with counties upon the
advice and counsel of the Association of Oregon Counties to
establish the method of allocating moneys from the account. + }
  **************************** SECTION 16.  { + Notwithstanding
any other law, in each fiscal year during the period beginning
July 1, 1999, and ending June 30, 2009, if the participating
local governments fail to provide the moneys required under
section 12 (1)(b) and (2)(b) of this Act or those governments'
share of the $75 million described in section 14 of this Act, the
Director of Transportation may certify such failure and the
resulting deficiency to the Oregon Department of Administrative
Services, the Economic Development Department and the State
Treasurer. Upon such certification, an amount equal to the
deficiency shall be withheld in the following fiscal year from
Clackamas, Multnomah and Washington Counties and the other
participating local governments from:
  (1) Lottery moneys for economic development otherwise available
to those counties; and
  (2) Other state shared revenues otherwise available to the
other participating local governments. + }
  **************************** SECTION 16a.  { + The authority
granted by sections 11 to 16 of this Act may be exercised on and
after the date on which federal matching funds are made available
for the first construction segment of the South North Line light
rail project. + }
  **************************** SECTION 16b.  { + (1) In addition
to the requirements of ORS 223.297 to 223.314, a governmental
unit that has a transportation system development charge or
transportation impact fee and that is required to reduce vehicle
travel by land use rules adopted under any statewide planning
goal related to transportation shall establish such charge or
fee, or develop a system of credits, or both, based on a
methodology that takes into account the effect of measures
reasonably expected to reduce vehicle trip generation, including,
but not limited to:
  (a) Development that is transit oriented or that occurs within
a pedestrian district;
  (b) Development that utilizes pedestrian, bicycle or transit
facilities to achieve reductions in vehicle trips;
  (c) Development that incorporates transportation demand
management measures; and
  (d) Reduction of vehicle trips, if any, resulting from the
construction and operation of light rail lines within the
Portland metropolitan region.
  (2) In order to maximize and encourage transit oriented
development along light rail lines, governmental units shall:
  (a) Provide through lowered fees or allowance of credits for
the reduction of any transportation system development charges or
transportation impact fees otherwise applicable by at least 30
percent for any transit oriented development constructed within
one-quarter mile of a passenger station on a light rail line. For
the purpose of complying with the requirement of this paragraph
to provide for reduced fees and charges, a governmental unit may
consider the reductions, if any, in fees or charges made under
subsection (1) of this section.
  (b) Not impose a new or increased transportation system
development charge or a transportation impact other than
construction inflation adjustments, on any transit oriented
development within one-quarter mile of a passenger station on a
light rail line.
  (3) The reduction of transportation system development charges
or transportation impact fees and the other restrictions on such
charges and fees required under subsection (2) of this section
shall be in effect only during the period of effectiveness of the
Transportation Equity Account established under section 11 of
this Act.
  (4) A governmental unit shall not increase its transportation
system development charge or transportation impact fee against
residential housing to offset reductions required by subsection
(2)(a) or (b) of this section.
  (5) A governmental unit outside the Portland metropolitan
region that has a transportation system development charge or
transportation impact fee shall base such charge or fee on a
methodology that takes into account capacity-increasing capital
improvements, if any, financed with moneys from the
Transportation Equity Account.
  (6)(a) As used in this section, 'transportation system
development charge' or 'transportation impact fee' means only
that portion of a charge or fee adopted and assessed against
development for the purpose of funding streets, roads and related
improvements that principally provide for automobile circulation.
  (b) 'Transit oriented development' means transit oriented
development as defined in land use rules adopted under any
statewide planning goal related to transportation.
  (c) 'Pedestrian district' has the meaning given that term in
land use rules adopted under any statewide planning goal relating
to transportation.
  (7) Nothing in this section is intended to make adoption or
amendment of a system development charge a land use decision
contrary to ORS chapter 223, or to require governmental units to
set system development charges in a manner inconsistent with ORS
chapter 223. + }
  **************************** SECTION 16c.  { + (1) To assist
and advise the Legislative Assembly in the performance of an
oversight function relating to the construction of the South
North Line, the Light Rail Oversight Committee is established.
  (2) The Light Rail Oversight Committee shall consist of eight
members appointed as follows:
  (a) Four members shall be appointed by the President of the
Senate; and
  (b) Four members shall be appointed by the Speaker of the House
of Representatives.
  (3) The members of the committee shall be individuals with
experience or training in mass transit, the financing or
construction of major infrastructure projects, land use and state
or local government.
  (4) The appointing officers may appoint members of the
Legislative Assembly to the committee. The appointing officers
are ex officio members of the committee.
  (5) Members of the Light Rail Oversight Committee are not
entitled to compensation, but may receive actual and necessary

travel or other expenses actually incurred in the performance of
their duties as provided by ORS 292.495 (2).
  (6) The Light Rail Oversight Committee shall consult with, and
request and receive reports and other information from the public
and private agencies managing the planning, financing and
construction of the South North Line. The committee shall study
and maintain oversight of all aspects of the planning, financing
and construction of the South North Line, including costs,
administration, management, compliance with applicable laws,
intergovernmental relations and compliance with scheduled
completion dates for separate segments of the South North Line.
  (7) As the members consider it necessary or appropriate, the
committee shall submit reports and recommendations to the
Legislative Assembly concerning the South North light rail
project.
  (8) Upon completion of the South North Line, the tenure of
office of the members of the committee shall cease and the Light
Rail Oversight Committee is abolished. + }
  **************************** SECTION 17.  { + (1) Prior to the
commencement of the regular session of the Sixty-ninth
Legislative Assembly, the State Treasurer shall conduct an
examination of the means by which the State of Oregon can best
coordinate and maximize the benefits of using bonds that are
secured by or payable from the net proceeds derived from the
operation of the State Lottery for purposes consistent with
section 4, Article XV, Oregon Constitution.
  (2) The examination shall include, but not be limited to:
  (a) The development of proposed legislation that will maximize
this state's flexibility in the use of net proceeds from the
operation of the State Lottery for the issuance of bonds to
finance projects that are eligible for funding under section 4,
Article XV, Oregon Constitution, while at the same time providing
a coordinated program for the issuance and administration of such
bonds;
  (b) The identification of financing methods that will reduce
the costs to the State of Oregon of borrowing moneys through the
use of bonds or other obligations that are secured by or payable
from the net proceeds derived from the operation of the State
Lottery; and
  (c) The maintenance and support of this state's current
commitment to the lottery bond funding of the Westside Light Rail
project under ORS 391.090 to 391.150, the South North Line under
sections 1 to 18 of this Act and the Transportation Equity
Account and the preservation of the security of lottery bonds
issued under those laws.
  (3) The State Treasurer shall report the findings of the
examination and the legislative proposals required by this
section to the Sixty-ninth Legislative Assembly and, if the
examination and recommendations are completed prior to the
commencement of the regular session of the Sixty-ninth
Legislative Assembly, to the Emergency Board. + }
  **************************** SECTION 18.  { + (1)
Notwithstanding ORS chapters 28 and 34, ORS 183.400 to 183.484 or
any other provision of law, exclusive jurisdiction for the
determination of the constitutionality of any provision of
sections 1 to 18 of this Act, including but not limited to the
determination of whether the light rail lottery bonds authorized
by sections 1 to 18 of this Act violate any provision of the
Oregon Constitution, is conferred upon the Supreme Court.
  (2) Any interested person may petition the Supreme Court for a
determination of the constitutionality of any provision of
sections 1 to 18 of this Act, including but not limited to the
determination of whether the light rail lottery bonds authorized
by sections 1 to 18 of this Act violate any provision of the
Oregon Constitution. Any such petition must be filed within 30
days after the effective date of sections 1 to 18 of this Act.
The petition shall name the Director of the Department of
Transportation as respondent. If the petition seeks a
determination of whether the light rail lottery bonds authorized
by sections 1 to 18 of this Act violate any provision of the
Oregon Constitution, the petition shall also name the State
Treasurer as a respondent. The petition shall comply with the
specifications for opening briefs set forth in the Oregon Rules
of Appellate Procedure. Within 20 days following the filing of
the petition, the respondents may file an answering brief, which
shall comply with the specifications for answering briefs set
forth in the Oregon Rules of Appellate Procedure. The Supreme
Court may hear oral arguments and may provide by order for such
hearings and filings as are reasonably necessary for the prompt
disposition of the petition. The Supreme Court shall decide the
matter with the greatest expediency. + }
  **************************** SECTION 19.  { + (1) The
Legislative Assembly finds that a failure to obtain maximum
federal funding for the South North MAX Light Rail Project in the
upcoming federal transportation authorization act will seriously
impair the viability of the transportation system planned for the
Portland metropolitan area, the ability of the area to implement
a significant portion of its air quality and energy efficiency
strategies and the ability of affected local governments to
implement significant parts of their comprehensive plans. The
Legislative Assembly further finds that to maximize the state's
and metropolitan area's ability to obtain the highest available
level of federal funding for the South North MAX Light Rail
Project and to assure the timely and cost-effective construction
of the project, it is necessary: + }
   { +  (a) To establish the process to be used in making
decisions in a land use final order on the light rail route,
light rail stations, light rail park-and-ride lots, light rail
maintenance facilities and any highway improvements to be
included in the South North MAX Light Rail Project, including
their locations;
  (b) To expedite the process for appellate review of a land use
final order; and
  (c) To establish an exclusive process for appellate review.
  (2) Sections 19 to 31 of this Act shall be liberally construed
to accomplish the purposes enumerated in subsection (1) of this
section.
  (3) It is the intent of the Legislative Assembly that residents
of neighborhoods within the Tri-County Metropolitan
Transportation District of Oregon affected by land use decisions,
limited land use decisions or land divisions resulting from the
siting, construction or operation of any MAX Light Rail line,
either as individuals or through their neighborhood associations,
shall have the opportunity to participate in such decisions and
divisions.
  (4) The Legislative Assembly deems the procedures and
requirements provided for in sections 19 to 31 of this Act, under
the unique circumstances of the South North MAX Light Rail
Project, to be equivalent in spirit and substance to the land use
procedures that otherwise would be applicable. + }
  **************************** SECTION 20.  { + As used in
sections 19 to 31 of this Act, unless the context requires
otherwise:
  (1) 'Administrator' means the State Court Administrator.
  (2) 'Affected local governments' means:
  (a) For the project, the cities and counties within which the
light rail route, stations, lots and maintenance facilities, and
the highway improvements for the project will be located.
  (b) For the project extension, the cities and counties within
which the light rail route, stations, lots and maintenance
facilities, and the highway improvements for the project
extension will be located.
  (3) 'Board' means the Land Use Board of Appeals.
  (4) 'Commission' means the Land Conservation and Development
Commission.
  (5) 'Council' means the elected legislative body of Metro.
  (6) 'Court' means the Oregon Supreme Court.
  (7) 'Criteria' means the land use criteria established by the
commission, as provided in section 23 of this Act.
  (8) 'Development approval' means approval of a proposed
development of land based on discretionary standards designed to
regulate the physical characteristics of a use permitted
outright, including but not limited to site review and design
review.
  (9) 'Draft Statement' means the Draft Environmental Impact
Statement for the project or project extension prepared pursuant
to regulations implementing the National Environmental Policy Act
of 1969.
  (10) 'Final Statement' means the final Environmental Impact
Statement for the project or project extension, as may be amended
from time to time, or any supplementary assessments or
statements, prepared pursuant to regulations implementing the
National Environmental Policy Act of 1969.
  (11) 'Full Funding Grant Agreement' means the contractual
agreement entered into between the Federal Government and the
local grant recipient establishing the maximum federal financing
contribution for construction of the project or project extension
and setting forth terms, conditions and limitations for federal
financing of the project and project extension.
  (12) 'Highway improvements' means the highway improvements, if
any, to be included in the project or project extension. The
highway improvements shall be selected from among the highway
improvements, if any, described in a Draft Statement or Final
Statement for the project or project extension.
  (13) 'Land use final order' means a written order or orders of
the council deciding:
  (a) The light rail route for the project or project extension,
including its location;
  (b) Stations, lots and maintenance facilities for the project
or project extension, including their locations; and
  (c) The highway improvements for the project or project
extension, including their locations.
  (14) 'Light rail route' means the light rail alignment to be
included in the project or project extension. The light rail
route shall be selected from among light rail route alternatives
described in a Draft Statement or Final Statement for the project
or project extension.
  (15) 'Locally Preferred Alternative Report' means a decision
adopted in accordance with federal requirements determining
whether or not to build the South North MAX Light Rail Project
and, if to build, recommending the light rail route, stations,
lots and maintenance facilities, and the highway improvements,
including their locations, to be included in the South North MAX
Light Rail Project.
  (16) 'Locations' means the boundaries within which the light
rail route, stations, lots and maintenance facilities, and the
highway improvements shall be located, as provided in section 22
(1) of this Act.
  (17) 'Measures' includes any mitigation measures, design
features, or other amenities or improvements associated with the
project or project extension.
  (18) 'Project' means the portion of the South North MAX Light
Rail Project within the Portland metropolitan area urban growth
boundary, including each segment thereof as set forth in the
Phase I South North Corridor Project Locally Preferred
Alternative Report as may be amended from time to time or as may
be modified in a Final Statement or the Full Funding Grant
Agreement. The project includes the light rail route, stations,
lots and maintenance facilities, and any highway improvements to
be included in the project.
  (19) 'Project extension' means the portion of the South North
MAX Light Rail Project within the Portland metropolitan area
urban growth boundary as set forth in the Phase II South North
Corridor Project Locally Preferred Alternative Report as may be
amended from time to time or as may be modified in a Final
Statement or the Full Funding Grant Agreement. The project
extension includes the light rail route, stations, lots, and
maintenance facilities, and any highway improvements to be
included in the project extension.
  (20) 'Stations, lots and maintenance facilities' means the
light rail stations, light rail park-and-ride lots and light rail
vehicle maintenance facilities to be included in the project or
project extension, to be selected from among alternatives
described in a Draft Statement or Final Statement for the project
or project extension.
  (21) 'Steering Committee' means a committee staffed by Metro
through the time of adoption of the initial land use final order
for the project or project extension, and thereafter staffed by
Tri-Met, comprised at least of representatives of the Department
of Transportation, Tri-Met and elected officials of the affected
local governments and Metro, whose specific membership and manner
of function shall be determined by intergovernmental agreement
between Metro, Tri-Met, the Department of Transportation and the
affected local governments for the project or project extension.
  (22) 'Tri-Met' means the Tri-county Metropolitan Transportation
District of Oregon. + }
  **************************** SECTION 21.  { + Notwithstanding
any other provision of law, the procedures and requirements
provided for in sections 19 to 31 of this Act shall be the only
land use procedures and requirements to which the following land
use decisions shall be subject:
  (1) Decisions on the light rail route for the project and
project extension, including its location;
  (2) Decisions on the stations, lots and maintenance facilities
for the project and project extension, including their locations;
and
  (3) Decisions on the highway improvements for the project and
project extension, including their locations. + }
  **************************** SECTION 22.  { + (1) A land use
final order shall establish the light rail route, stations, lots
and maintenance facilities, and the highway improvements for the
project or project extension, including their locations, as
provided in this section and in accordance with the procedures
identified in section 25 of this Act.
  (a) Prior to publication of the public hearing notice described
in section 25 (1) of this Act, and following receipt of
recommendations from the Department of Transportation and the
Steering Committee, Tri-Met shall apply to the council for a land
use final order approving the light rail route, stations, lots
and maintenance facilities, and the highway improvements,
including their locations. The applied for locations shall be in
the form of boundaries within which the light rail route,
stations, lots and maintenance facilities, and the highway
improvements shall be located. These boundaries shall be
sufficient to accommodate adjustments to the specific placements
of the light rail route, stations, lots and maintenance
facilities, and the highway improvements for which need commonly
arises upon the development of more detailed environmental or
engineering data following approval of a Full Funding Grant
Agreement.
  (b) Following a public hearing as provided in section 25 (3) of
this Act, the council shall either adopt a land use final order
establishing the facilities and locations applied for by Tri-Met

or continue the public hearing and refer the proposed facilities
and locations back to Tri-Met for further review.
  (c) Upon referral by the council, Tri-Met shall consider
amendments to its proposed facilities and locations and then
forward a further application to the council for hearing and
adoption. The council shall either adopt a land use final order
establishing the facilities and locations applied for by Tri-Met
or again continue the hearing and refer the proposed facilities
and locations back to Tri-Met for further review and application
to the council.
  (2) Any siting of the light rail route, a station, lot or
maintenance facility, or a highway improvement outside the
locations established in a land use final order, and any new
station, lot, maintenance facility or highway improvement, shall
require a land use final order amendment or a new land use final
order which shall be adopted in accordance with the process
provided for in subsection (1) of this section. + }
  **************************** SECTION 23.  { + The Land
Conservation and Development Commission shall establish criteria
to be used by the council in making decisions in a land use final
order on the light rail route, stations, lots and maintenance
facilities, and the highway improvements for the project and
project extension, including their locations. The provisions in
ORS chapters 183, 192, 195, 197, 215 and 227 and in any other law
or regulation shall not apply to proceedings of the commission
under sections 19 to 31 of this Act. The following procedures
shall govern the proceedings of the commission in establishing
criteria:
  (1) The commission shall publish notice of a public hearing on
criteria to be established by the commission in a newspaper of
general circulation within the Portland metropolitan area at
least 20 days prior to the public hearing. The notice shall:
  (a) Identify the general subject matter of the hearing and the
date, time and place of the hearing;
  (b) State that any criteria to be proposed to the commission
must be filed at the Salem office of the Department of Land
Conservation and Development at least 10 days prior to
commencement of the hearing and will be available for public
inspection following filing;
  (c) State that appeals from an order establishing criteria must
be filed within seven days following the date written notice of
the order is mailed;
  (d) State that failure by a person to raise an issue at the
hearing in person or in writing, or failure to provide sufficient
specificity to afford the commission an opportunity to respond to
the issue raised, shall preclude appeal by that person to the
court on that issue;
  (e) State that persons whose names appear on petitions
submitted into the public hearing record will not be considered
by that action to have provided oral or written testimony at the
hearing; and
  (f) State that written notice of adoption of an order
establishing criteria will be provided only to persons who
provide oral or written testimony at the hearing and who also
provide, in writing, a request for written notice and a mailing
address to which notice should be sent.
  (2) The commission also may provide such other notice as it
deems appropriate to inform interested persons of the hearing.
However, no other form of notice is required.
  (3) A copy of the staff report, if any, shall be available for
public inspection at least four days prior to the public hearing.
  (4) The commission shall hold a public hearing on the criteria
to be established by the commission. At the commencement of the
hearing, a statement shall be made to those in attendance that:
  (a) Identifies the general subject matter of the hearing;

  (b) States that appeals from an order establishing criteria
must be filed within seven days following the date written notice
of the order is mailed;
  (c) States that failure by a person to raise an issue at the
hearing in person or in writing, or failure to provide sufficient
specificity to afford the commission an opportunity to respond to
the issue raised, shall preclude appeal by that person to the
court on that issue;
  (d) States that submittal of proposed criteria at the hearing
will not be accepted unless the proposed criteria were filed at
the Salem office of the Department of Land Conservation and
Development at least 10 days prior to the commencement of the
hearing;
  (e) States that persons whose names appear on petitions
submitted into the public hearing record will not be considered
by that action to have provided oral or written testimony at the
hearing; and
  (f) States that written notice of adoption of an order
establishing criteria will be provided only to persons who
provide oral or written testimony at the hearing and who also
provide, in writing, a request for written notice and a mailing
address to which notice should be sent.
  (5) The commission shall allow for the submission of oral and
written testimony at the hearing, subject to such hearing
procedures as the commission may deem necessary. The commission
may exclude irrelevant, immaterial or unduly repetitious
testimony. The commission shall not allow the submission of
proposed criteria at the hearing unless the proposed criteria
were filed at the Salem office of the Department of Land
Conservation and Development at least 10 days prior to the
commencement of the hearing. Minutes of the hearing shall be
taken.
  (6) The commission shall close the hearing and adopt an order
establishing the criteria within 14 days following commencement
of the hearing. In establishing the criteria, the commission
shall consider those statewide planning goals and those plan
policies that are relevant to decisions regarding the light rail
route, stations, lots and maintenance facilities, and the highway
improvements, and their locations. The commission's order shall
include a brief statement explaining how the criteria established
reasonably reflect those statewide land use planning goals and
those plan policies that are relevant to decisions regarding the
light rail route, stations, lots and maintenance facilities, and
the highway improvements, and their locations.
  (7) Following establishment of the criteria, the commission as
soon as reasonably possible shall:
  (a) Notify in writing the council, Tri-Met, the Department of
Transportation, the affected local governments and any person who
provided oral or written testimony at the hearing and who also
provided, in writing, a request for written notice and a mailing
address to which notice should be sent of its order and the
criteria it has established; and
  (b) Make copies of its order and the criteria available for
public inspection at the Salem and Portland offices of the
Department of Land Conservation and Development.
  (8) The commission shall adopt the order described in
subsection (6) of this section within 90 days following the
effective date of sections 19 to 31 of this Act. + }
  **************************** SECTION 24.  { + (1)
Notwithstanding ORS 183.400, 183.482, 183.484, 197.825 or any
other law or regulation, exclusive jurisdiction to review a Land
Conservation and Development Commission order establishing
criteria under section 23 of this Act is conferred on the court.
  (2) Proceedings for review of the commission's order shall be
instituted when any person who is adversely affected files a

notice of intent to appeal with the administrator that meets the
following requirements:
  (a) The notice shall be filed within seven days following
written notice of the commission's order.
  (b) The notice shall state the nature of the commission's
order, in what manner the commission rejected the position raised
by the petitioner before the commission and, with supporting
affidavit, facts showing how the petitioner is adversely
affected.  The petitioner shall be considered adversely affected
if:
  (A) The petitioner provided oral or written testimony at the
commission's hearing; and
  (B) The petitioner proposed criteria, as provided in section 23
(5) of this Act, that the commission rejected in its order, or
the petitioner, in the petitioner's testimony at the hearing,
opposed the criteria which the commission selected in its order.
  (c) The petitioner shall deliver a copy of the notice of intent
to appeal by personal service to the commission at the Salem
office of the Department of Land Conservation and Development, at
the Salem office of the Department of Transportation, to the
Attorney General, to the council at the office of Metro's
executive officer, to Tri-Met at the office of Tri-Met's general
manager and to the affected local governments.
  (3) Within seven days following filing of the notice of intent
to appeal, the commission shall personally deliver to the court a
certified copy of the record of its criteria proceedings.  The
record shall include only:
  (a) The commission's order establishing the criteria;
  (b) Any written report received by the commission from the
Department of Land Conservation and Development at the hearing;
  (c) Proposed criteria submitted to the commission as provided
in section 23 (5) of this Act and written testimony submitted to
the commission at the hearing;
  (d) Minutes of the public hearing before the commission;
  (e) The published notice of public hearing; and
  (f) Proof of mailing to persons entitled to notice of the
commission's order.
  (4) Within 14 days following the filing of the notice of intent
to appeal, the petitioner shall file the petitioner's brief. The
petitioner shall personally deliver the brief to the
administrator, to the Attorney General, to the council at the
office of Metro's executive officer, to Tri-Met at the office of
Tri-Met's general manager and to the affected local governments.
The brief shall comply with the specifications for opening briefs
set forth in the rules of appellate procedure.
  (5) Within 28 days following the filing of the notice of intent
to appeal, the commission, Metro, Tri-Met, the Department of
Transportation and any affected local government, unless Metro,
Tri-Met, the Department of Transportation or an affected local
government is the petitioner, may file an answering brief that
shall comply with the specifications for answering briefs set
forth in the rules of appellate procedure.
  (6) On review, the court may reverse or remand the commission's
order only if it finds that the order:
  (a) Violates constitutional provisions;
  (b) Exceeds the statutory authority of the commission; or
  (c) Was adopted by the commission without substantial
compliance with the procedures in section 23 of this Act in a
manner that prejudiced the substantial rights of the petitioner.
Failure of the commission to notify a person entitled to written
notice under section 23 (7)(a) of this Act shall not be a ground
for reversal or remand if evidence of mailing to that person is
provided. The court shall not substitute its judgment for that of
the commission as to any issue of fact or as to any issue within
the commission's discretion.

  (7) The court shall not stay any action by the council under
sections 19 to 31 of this Act pending the court's review under
this section.
  (8) The court may decide the matter on the briefs or it may
hold oral arguments. The court shall decide the matter at its
earliest practicable convenience, consistent with sections 19 to
31 of this Act. + }
  **************************** SECTION 25.  { + The council shall
apply the criteria established by the commission in making
decisions in a land use final order on the light rail route,
stations, lots and maintenance facilities, and the highway
improvements, including their locations. The provisions in ORS
chapters 183, 192, 195, 197, 215, 227, 267 and 268 and in any
other law or regulation shall not apply to proceedings of the
council under sections 19 to 31 of this Act.  The following
procedures shall govern the council's proceedings in adopting a
land use final order:
  (1)(a) The council shall publish notice of a public hearing on
the light rail route, stations, lots and maintenance facilities,
and the highway improvements, including their locations, as to
which decisions will be made in the land use final order of the
council in a newspaper of general circulation within Metro's
jurisdictional area at least 14 days prior to the hearing.
  (b) The notice shall:
  (A) Identify the general subject matter of the hearing and the
street address where a staff report and the criteria may be
found;
  (B) Identify the date, time and place of the hearing;
  (C) State that appeals from decisions in a land use final order
must be filed within 14 days following the date the land use
final order is reduced to writing and bears the necessary
signatures;
  (D) State that failure by a person to raise an issue at the
hearing in person or in writing, or failure to provide sufficient
specificity to afford the council an opportunity to respond to
the issue raised, shall preclude appeal by that person to the
board based on that issue;
  (E) State that persons whose names appear on petitions
submitted into the public hearing record will not be considered
by that action to have provided oral or written testimony at the
hearing; and
  (F) State that written notice of adoption of the land use final
order will be provided only to persons who provide oral or
written testimony at the hearing and who also provide, in
writing, a request for written notice and a mailing address to
which notice should be sent.
  (c) The council also shall provide such other notice as is, in
its judgment, reasonably calculated to give notice to persons who
may be substantially affected by its decision. No other form of
notice is required.
  (2) A copy of the staff report shall be available for public
inspection at least seven days prior to the public hearing. The
staff report shall set forth and address compliance with the
criteria. The staff report also shall include a description of
the proposed boundaries within which the light rail route,
stations, lots and maintenance facilities, and the highway
improvements shall be located, as recommended by Tri-Met under
section 22 (1) of this Act. The staff report may be amended as
the staff considers necessary or desirable prior to the public
hearing without further notice.
  (3) The council shall hold a public hearing on the light rail
route, stations, lots and maintenance facilities, and the highway
improvements, including their locations, as to which decisions
will be made in the land use final order. At the commencement of
the hearing, a statement shall be made to those in attendance
that:
  (a) Lists the criteria or directs those present to a place at
the hearing location where any person may obtain a list of the
criteria at no cost;
  (b) Lists generally the light rail route, stations, lots and
maintenance facilities, and the highway improvements, including
their locations, as to which decisions will be made in the land
use final order;
  (c) States that testimony shall be directed towards the
application of the criteria to the light rail route, stations,
lots and maintenance facilities, and the highway improvements,
including their locations, as to which decisions will be made in
the land use final order;
  (d) States that appeals from decisions in a land use final
order on the light rail route, stations, lots and maintenance
facilities, and the highway improvements, including their
locations, must be filed within 14 days following the date the
land use final order is reduced to writing and bears the
necessary signatures;
  (e) States that failure by a person to raise an issue at the
hearing, in person or in writing, or failure to provide
sufficient specificity to afford the council an opportunity to
respond to the issue raised, shall preclude appeal by that person
to the board based on that issue;
  (f) States that written notice of adoption of the land use
final order will be provided only to persons who have provided
oral or written testimony at the hearing and who also have
provided, in writing, a request for written notice and a mailing
address to which notice should be sent; and
  (g) States that persons whose names appear on petitions
submitted into the public hearing record will not be considered
by that action to have provided oral or written testimony at the
hearing.
  (4) The council shall allow for the submission of oral and
written testimony at the hearing, subject to such hearing
procedures as the council may deem necessary or appropriate for
the adoption of land use final orders. The council may exclude
irrelevant, immaterial or unduly repetitious testimony.
  (5) The council may take official notice at the hearing of any
matter identified in ORS 40.065 and 40.090 or as authorized by
the resolution, if any, of the council establishing hearing
procedures for the adoption of land use final orders.
  (6) The council shall close the hearing and shall adopt by
resolution a land use final order. The council may continue the
matter as provided in section 22 (1) of this Act or as it
otherwise considers necessary for the purpose of land use final
order adoption.
  (7) The land use final order shall be accompanied by written
findings demonstrating how the decisions on the light rail route,
stations, lots and maintenance facilities, and the highway
improvements, including their locations, comply with the
criteria.
  (8) Following adoption of a land use final order, the council
as soon as reasonably possible shall:
  (a) Provide media notice of the adoption; and
  (b) Provide written notice of the adoption to persons who:
  (A) Provided oral or written testimony at the hearing; and
  (B) Provided at the hearing, in writing, a request for written
notice and a mailing address to which written notice should be
sent. Persons whose names appear on petitions provided at the
hearing shall not be considered to have provided oral or written
testimony at the hearing. The written notice of adoption provided
hereunder shall indicate the date of written adoption and
signature of the land use final order, identify the place at and
time during which a copy of the land use final order may be
obtained and state that appeals from decisions in the land use

final order must be filed within 14 days following written
adoption and signature of the land use final order.
  (9) The procedures established by this section establish the
only opportunities that the council must provide for interested
persons to participate in the proceedings of the council in
adopting a land use final order. Subject to the other provisions
established by this section, the council by resolution may
establish additional procedures to govern its proceedings in
adopting a land use final order. + }
  **************************** SECTION 26.  { + (1) The state,
and all affected counties, cities, special districts and
political subdivisions shall:
  (a) Amend their comprehensive or functional plans, including
public facility plans and transportation system plans and their
land use regulations, to the extent necessary to make them
consistent with a land use final order; and
  (b) Issue the appropriate development approvals, permits,
licenses and certificates necessary for the construction of the
project or project extension consistent with a land use final
order. Development approvals, permits, licenses and certificates
may be subject to reasonable and necessary conditions of
approval, but may not, by themselves or cumulatively, prevent
implementation of a land use final order.
  (2) Notwithstanding the provisions of subsection (1)(a) of this
section or any other provision of state or local law, a land use
final order shall be fully effective upon adoption.
  (3) For purposes of subsection (1)(b) of this section, an
approval condition shall be considered not reasonable or
necessary, or shall be considered to prevent implementation of a
land use final order, if:
  (a) The measure has been deleted or deferred from the project
or project extension in the Full Funding Grant Agreement; or
  (b) The Steering Committee determines in accordance with the
provisions of the intergovernmental agreement described in
section 20 (21) of this Act that:
  (A) There are not sufficient federal, state and local funds
within the project or project extension budget to pay for the
measure;
  (B) The measure will significantly delay the completion or
otherwise prevent the timely implementation of the project or
project extension; or
  (C) The measure will significantly negatively impact the
operations of the project or project extension.
  (4) Applications for development approvals under subsection
(1)(b) of this section shall be treated as land use decisions and
not as limited land use decisions.
  (5) Plan and land use regulation amendments, to the extent
required under subsection (1)(a) of this section shall not be
reviewable by any court or agency.
  (6) Development approvals and permit, license and certificate
decisions under subsection (1)(b) of this section may be the
subject of administrative and judicial review as provided by law.
However, determinations of the Steering Committee made pursuant
to subsection (3) of this section shall not be reviewable and
shall control in the event of conflict.
  (7) Each state agency, special district or affected local
government that issues a development approval, permit, license or
certificate for the project or project extension shall continue
to exercise enforcement authority over the development approval,
permit, license or certificate. + }
  **************************** SECTION 27.  { + (1)
Notwithstanding ORS 183.482, 183.484, 197.825 or any other law or
regulation, exclusive jurisdiction for review of a land use final
order relating to the project or project extension is conferred
on the Land Use Board of Appeals and the court as provided by
sections 19 to 31 of this Act.
  (2) Review of a land use final order relating to the project or
project extension shall be initiated within 14 days following the
date that the land use final order is reduced to writing and
bears the necessary signatures by personal delivery to the board,
to the administrator and to Metro at the office of Metro's
executive officer of a notice of intent to appeal as required by
this section.
  (3) A person may petition for review of a land use final order
relating to the project or project extension if the person:
  (a) Personally delivered a notice of intent to appeal the land
use final order as provided for in subsection (2) of this
section; and
  (b) Appeared before the council orally or in writing at the
land use final order hearing on the project or project extension.
  (4) A person's failure to raise an issue at the land use final
order hearing, in person or in writing, or failure to provide
sufficient specificity to afford the council an opportunity to
respond to the issue raised, shall preclude that person from
petitioning for review based on that issue.
  (5) A notice of intent to appeal shall:
  (a) Contain an affidavit stating the facts that support the
petitioner's standing as provided in subsection (3) of this
section;
  (b) State with particularity the grounds on which the
petitioner assigns error; and
  (c) State the residence or business address of the petitioner
to which documents may be delivered, and the telephone and
facsimile number or numbers where the petitioner may be reached
during normal business hours.
  (6) Metro shall personally deliver to the board and to the
administrator a certified copy of the record of the council's
land use final order proceedings within seven days following the
filing and delivery of a notice of intent to appeal as provided
in subsection (2) of this section. Metro shall make copies of the
record available to the public for the actual costs of copying.
The record shall consist of the land use final order, the written
findings accompanying the land use final order, the notice of the
land use final order hearing, any audio cassette recordings of
the hearing, a statement of matters that were officially noticed
at the hearing, the staff report and any amendments thereto and
documents accepted into the record at the hearing. Metro shall
make a copy of the record available for inspection by petitioners
and shall provide a copy of the record to any petitioner upon
request for the actual costs of copying.
  (7) Any objection to the record shall be personally delivered
or transmitted by facsimile to the board, to the administrator
and to Metro at the office of Metro's executive officer within
four days following delivery of the record to the board. Within
four days thereafter, responses of Metro to objections to the
record shall be personally delivered or faxed to the board, to
the administrator and to the residences or business addresses of
the persons objecting. Thereafter, the board shall rule
expeditiously on objections. The board's ruling on objections
shall not affect the briefing schedule or decision timelines set
forth in sections 19 to 31 of this Act.
  (8) No stays or continuances of proceedings shall be permitted.
No person may intervene in and thereby be made a party to the
review proceedings, except that Tri-Met, the Department of
Transportation and the affected local governments shall have
standing to and may intervene on their own behalf.
  (9) Within 14 days following the filing of the notice of intent
to appeal, a petitioner shall personally deliver a petition for
review and brief to the board, to the administrator, to Metro at
the office of Metro's executive officer and to Tri-Met, the
Department of Transportation or an affected local government if
it has filed a motion to intervene in the review proceeding. The
petition for review and brief shall set out in detail each
assignment of error and shall identify those portions of the
record in which the petitioner raised in the land use final order
hearing the issues as to which error is assigned. The petition
for review and brief shall comply with the specifications for
opening briefs set forth in the rules of appellate procedure.
  (10) Within 28 days following the filing of the notice of
intent to appeal, Metro and any intervening party shall
personally deliver to the board, to the administrator and to any
petitioner at the petitioner's residence or business address
their briefs in response to a petition for review and brief.
Responding briefs shall comply with the specifications for
answering briefs set forth in the rules of appellate procedure.
  (11) Within 35 days following the filing of the notice of
intent to appeal, the board shall hear oral argument in the
manner provided for in its administrative rules. The board shall
issue a final opinion within 28 days following oral argument. The
board's final opinion shall affirm or remand the council's land
use final order, stating the reasons for the decision.
  (12)(a) The board shall remand the land use final order only if
it finds that the council:
  (A) Improperly construed the criteria;
  (B) Exceeded its statutory or constitutional authority; or
  (C) Made a decision in the land use final order on the light
rail route, on stations, lots or maintenance facilities, or the
highway improvements, including their locations, that was not
supported by substantial evidence in the whole record. The
existence in the whole record of substantial evidence supporting
a different decision on the light rail route, stations, lots or
maintenance facilities, or the highway improvements, including
their locations, shall not be a ground for remand if there also
was substantial evidence in the whole record supporting the land
use final order.
  (b) Failure to comply with statutory procedures, including
notice requirements, shall not be grounds for invalidating a land
use final order.
  (c) The board shall affirm all portions of the land use final
order that it does not remand.
  (13) Upon issuance of its final opinion, the board shall file
the opinion with the administrator and transmit copies to the
parties. The board also shall inform the parties of the filing of
the final opinion by telephone or facsimile. Within seven days
following issuance of its final order, the board shall file with
the administrator a copy of the record of the board.
  (14) Neither the board nor the court shall substitute its
judgment for that of the council as to any issue of fact or any
issue within the discretion of the council. + }
  **************************** SECTION 28.  { + (1) Any party
appearing before the Land Use Board of Appeals under section 27
of this Act and objecting to the board's final opinion may
petition the court for review of the final opinion as provided
for in this section. The petition shall be filed with the
administrator and served on the board and all parties within 14
days following the board's issuance of its final opinion in the
manner provided for filing and service in the rules of appellate
procedure. The petition shall be in the form of a brief and shall
state, with particularity and with supporting authority, each
reason asserted for reversal or modification of the board's
decision. Insofar as practicable, the petition shall comply with
the specifications for petitions for review in the rules of
appellate procedure.
  (2) If a petition for review has been filed, then within 14
days thereafter, any other party appearing before the board may,
but need not, file a response to the petition for review. In the
absence of a response, the party's brief before the board shall
be considered as the response. A party seeking to respond to the
petition for review shall file its response with the
administrator and serve it on the board and all parties in the
manner provided for filing and service in the rules of appellate
procedure. The response shall be in the form of a brief and shall
comply with the specifications for responses to petitions for
review in the rules of appellate procedure.
  (3) The court may decide the matter on the briefs, or it may
hold oral argument. The court may adopt the board's final opinion
as its own, affirm without opinion or issue a separate opinion.
The court shall decide the matter at its earliest practicable
convenience, consistent with sections 19 to 31 of this Act.
  (4) The court shall affirm or remand the land use final order,
in whole or in part. The court shall affirm all parts of the
final order that it does not remand. The court shall base its
decision on the standards for review set out in section 27 (12)
of this Act. If the court remands, the council shall respond as
to those matters remanded by adopting by resolution a land use
final order on remand. The provisions of section 25 of this Act
shall govern the proceedings of the council in adopting a land
use final order on remand. Upon adoption of a land use final
order on remand, Metro shall immediately file with the
administrator the land use final order on remand and the record
of the council.  Metro shall personally deliver copies of its
land use final order on remand to the parties before the court
and shall inform the parties of the filing of the final order on
remand by telephone or facsimile.
  (5) If the court remands, the court shall retain jurisdiction
over the matters remanded. Within 14 days following adoption of a
land use final order on remand, the parties before the court may
submit memoranda to the court with respect thereto and shall
personally deliver copies of the memoranda to other parties
before the court. The court may limit the length of such
memoranda. The court's decision on the land use final order on
remand shall be based on the standards set forth in section 27
(12) of this Act. + }
  **************************** SECTION 29.  { + (1) If, as a
condition of executing a Full Funding Grant Agreement, the
Federal Government requires the deletion or deferral of portions
of the approved project or project extension, or the deletion or
deferral of measures expressly provided for in a Final Statement,
a determination of which improvements or measures to delete or
defer shall be made in accordance with the provisions of the
intergovernmental agreement described in section 20 (21) of this
Act.
  (2) If, subsequent to execution of a Full Funding Grant
Agreement, additional deletions or deferrals are required due to
insufficient funds in the budgets for the project or project
extension, a determination of which improvements or measures to
delete or defer shall be made in accordance with the provisions
of the intergovernmental agreement described in section 20 (21)
of this Act. + }
  **************************** SECTION 30.  { + (1) Upon
execution of a Full Funding Grant Agreement, the council shall
amend the land use final order to be consistent with the terms
and conditions of the Full Funding Grant Agreement.
  (2) The following amendments to a land use final order shall be
considered technical and environmental and shall not be subject
to judicial or administrative review:
  (a) Amendments resulting from adoption of a Final Statement;
  (b) Amendments required to ensure consistency with an executed
Full Funding Grant Agreement; and
  (c) Amendments to defer or delete a portion of the project or
project extension as provided for in section 22 (2) of this
Act. + }
  **************************** SECTION 30a.  { + (1) If the line
extending Tri-Met's regional light rail system north from
Clackamas County, Oregon, is not part of a phased project that
will serve both the Portland metropolitan region and Clark
County, Washington, then prior to the issuance by Tri-Met of any
general obligation bonds to fund its share of the line extending
Tri-Met's regional light rail system north from Clackamas County,
Oregon, Tri-Met shall submit to its electors the question of the
issuance of such general obligation bonds.
  (2) As used in this section, the terms 'Portland metropolitan
region' and 'Tri-Met' have the meanings given those terms in
section 2 of this Act. + }
  **************************** SECTION 31.  { + No action taken
by the commission, the council, the board or the court under
sections 19 to 31 of this Act shall be invalid due to a failure
to meet a timeline established by sections 19 to 31 of this
Act. + }
  **************************** SECTION 31a. { +  According to the
provisions of ORS 192.230 to 192.250 and beginning in 1999, Metro
shall report to the Legislative Assembly by January 15 of each
odd-numbered year on the implementation of the South North Line.
The report shall contain information on residential housing
densities in the metropolitan service district and the
geographic, economic and transportation relationships between the
densities and the South North Line. The report shall compare
housing densities at the time of the report to density
projections contained in project plans.  The report shall contain
information on the construction status of the South North Line,
projected expenditures for complete construction and maintenance
of the line, expenditures from the South North Construction Fund
and the Light Rail Bond Fund, and all financial obligations
incurred by Metro and Tri-Met in planning, construction and
operation of the South North Line. The report also shall contain
information on planned, actual and projected ridership. + }
  **************************** SECTION 31b.  { + Section 31a of
this Act is repealed July 1, 2019. + }
  **************************** SECTION 32.  { + The Legislative
Assembly of the State of Oregon hereby adopts and ratifies the
Columbia River Light Rail Transit Compact set forth in section 33
of this Act, and the provisions of the compact are hereby
declared to be the law of this state upon such compact becoming
effective as provided in Article XXII of the compact. + }
  **************************** SECTION 33.  { + The provisions of
the Columbia River Light Rail Transit Compact are as follows: + }
_________________________________________________________________
                               { +
ARTICLE I + }
                               { +
Columbia River Light Rail Transit Authority Established
  The States of Oregon and Washington establish by way of this
interstate compact an independent, separate regional authority,
which is an instrumentality of both of the signatory parties
hereto, known as Columbia River Light Rail Transit Authority
(hereinafter referred to as the 'Authority'). The Authority shall
be a body corporate and politic, and shall have only those powers
and duties granted by this compact and such additional powers as
may hereafter be conferred upon the Authority by the acts of both
signatories. + }
                               { +
ARTICLE II + }
                               { +
Definitions
  As used in this compact, the following words and terms shall
have the following meanings, unless the context clearly requires
a different meaning:
  (1) 'C-TRAN' means the Clark County Public Transportation
Benefit Authority based in Clark County, Washington, or any
successor agency or authority.
  (2) 'Major feeder system' means all bus or other transit
services provided by C-TRAN or Tri-Met that are or are planned to
be connected with the South North light rail transit line, to
accommodate the transfer of passengers to or from the light rail
line and to transport light rail passengers between the light
rail station and their trip origin or trip destination.
  (3) 'Signatory' or 'signatory state' means the State of Oregon
or the State of Washington.
  (4) 'South North light rail transit line' means the light rail
line directly connecting portions of Clackamas County, Oregon,
Portland, Oregon and Clark County, Washington as may be extended
from time to time, including any segment thereof, and also
including, without limitation, all light rail vehicles,
rights-of-way, trackage, electrification, stations, park-and-ride
facilities, maintenance facilities, tunnels, bridges and
equipment, fixtures, buildings and structures incidental to or
required in connection with the performance of light rail service
between portions of Clackamas County, Oregon, Portland, Oregon
and Clark County, Washington. The South North light rail transit
line shall include a system that comprises any future light rail
lines and transit facilities that cross the jurisdictional lines
of the signatory states.
  (5) 'Transit facilities' means all real and personal property
necessary or useful in rendering transit service by means of
rail, bus, water and any other mode of travel including, without
limitation, tracks, rights of way, bridges, tunnels, subways,
rolling stock for rail, motor vehicles, stations, terminals,
areas for parking and all equipment, fixtures, buildings and
structures and services incidental to or required in connection
with the performance of transit service.
  (6) 'Transit service' means the transportation of persons and
their packages and baggage by C-TRAN, Tri-Met or the Authority by
means of transit facilities.
  (7) 'Tri-Met' means the Tri-County Metropolitan Transportation
District based in Portland, Oregon, or any successor agency or
authority. + }
                               { +
ARTICLE III + }
                               { +
Purpose and Functions + }
   { +  The purpose of the Authority is:
  (1) To generally cause the South North light rail transit line
to be designed, engineered, financed, constructed and developed
consistently with the applicable regional transportation and land
use plans and the locally preferred alternative selected pursuant
to regulations of the Federal Transit Administration or the
regulations of any successor federal agency or authority;
  (2) To facilitate the operation and maintenance of the South
North light rail transit line;
  (3) To coordinate C-TRAN and Tri-Met activities to implement
and operate the major feeder system that serves the South North
light rail transit line;
  (4) To coordinate C-TRAN and Tri-Met activities to implement
and operate buses or other transit facilities that serve bi-state
trips; and
  (5) To serve only such other regional transit purposes and to
perform such other regional transit functions as the signatories
may authorize. + }
                               { +
ARTICLE IV + }
                               { +
Powers + }
   { +  The Authority has the power to:
  (1) Sue and be sued, plead and be impleaded in all actions,
suits or proceedings, brought by or against it.

  (2) Adopt suitable rules and regulations not inconsistent with
this compact, the Constitution and laws of the United States or
the constitutions and laws of the signatories. The Authority may
adopt rules and regulations that:
  (a) Govern its activities;
  (b) Add specificity to its powers and duties;
  (c) Interpret legislation that is applicable to the Authority;
and
  (d) Resolve inconsistencies resulting from the application of
the laws and regulations of both signatories.
  (3) Acquire, maintain, control, and convey easements, licenses,
and other limited property rights for the purpose of constructing
the South North light rail transit line. However, the Authority
shall not have the power to own real property.
  (4) Receive and accept federal, state, regional or local
payments, appropriations, grants, gifts, loans, advances, credit
enhancements, credit guarantees and other funds, properties and
services as may be transferred or made available to the Authority
by either signatory, any political subdivision or agency thereof,
by the United States, or by any agency thereof, or by any other
public or private corporation or individual. Any funds received
by the Authority from any source may be commingled and expended
to carry out the purposes and functions of the Authority without
regard to any law of the signatories that requires expenditure of
appropriated funds within the fiscal period for which the
appropriation is made.
  (5) Disburse funds for its lawful activities and to make grants
or loans to C-TRAN or Tri-Met.
  (6) Enter into agreements with:
  (a) C-TRAN or Tri-Met to provide planning, engineering, design,
administration, construction management or other services needed
for the development of the South North light rail transit line;
  (b) C-TRAN, Tri-Met or, except with regard to matters specified
in paragraph (a) of this subsection, private entities for the
construction of the South North light rail transit line;
  (c) C-TRAN, Tri-Met or, except with regard to matters specified
in paragraph (a) of this subsection, private entities for the
construction of bridges over or tunnels under navigable streams
and bodies of water to be owned individually or jointly by the
States of Oregon and Washington;
  (d) C-TRAN or Tri-Met for the management, operation, and
maintenance of the South North light rail transit line;
  (e) C-TRAN or Tri-Met providing for acquisition by C-TRAN,
Tri-Met or other public entities of the property rights needed
for the South North light rail transit line and related
activities;
  (f) C-TRAN, Tri-Met or private entities to purchase, lease or
otherwise acquire the materials, equipment and vehicles needed
for the construction and implementation of the South North light
rail transit line; and
  (g) C-TRAN or Tri-Met to implement the decisions of the
Authority.
  (7) Delegate any of its powers and duties to any political
subdivision or governmental agency.
  (8) Resolve any disputes between C-TRAN and Tri-Met over the
operation of the South North light rail transit line or the major
feeder system. However, the Authority shall not have the power to
require from C-TRAN and Tri-Met capital improvements to the South
North light rail transit line or the major feeder system.
  (9) To the extent allowed by law, encourage, assist and
facilitate public and private development along the South North
light rail transit line.
  (10) Perform all other necessary and incidental functions.
  (11) Exercise such additional powers as shall be conferred on
it by Act of the federal Congress or jointly by the
signatories. + }
                               { +
ARTICLE V + }
                               { +
Board Membership + }
   { +  The Authority shall be governed by a board of six
directors consisting of three members of the C-TRAN governing
body and three members of the Tri-Met governing body. Directors
representing C-TRAN and Tri-Met shall be appointed by their
respective governing bodies. + }
                               { +
ARTICLE VI + }
                               { +
Terms of Office + }
   { +  Board members shall serve terms of four years, unless
terminated earlier by the governing body of the appointing
transit agency. + }
                               { +
ARTICLE VII + }
                               { +
Compensation of Directors + }
   { +  The directors shall serve without compensation. The
directors may be reimbursed for the necessary expenses incurred
in the performance of their duties pursuant to adopted policies
of the transit agency that appointed them. + }
                               { +
ARTICLE VIII + }
                               { +
Organization and Procedure + }
   { +  The board of directors of the Authority shall by rule
provide for its own organization and procedure. It shall
biennially elect a chairperson from among its directors who shall
serve a term of two years subject to earlier removal by a vote of
four directors.  Meetings of the board shall be held as
frequently as the board deems that the proper performance of its
duties requires, and the board shall keep minutes of its
meetings. The board shall adopt rules and regulations governing
its meetings, minutes and transactions. + }
                               { +
ARTICLE IX + }
                               { +
Staff + }
   { +  The Authority shall not have the power to hire
administrative staff. Administrative staff support shall be
provided by C-TRAN and Tri-Met by intergovernmental
agreement. + }
                               { +
ARTICLE X + }
                               { +
Quorum and Actions by the Board + }
   { +  Four directors shall constitute a quorum. No action by
the board shall be effective unless there is an affirmative vote
of a majority of those present. + }
                               { +
ARTICLE XI + }
                               { +
Conflicts of Interest + }
   { +  (1) No director shall:
  (a) Be financially interested, either directly or indirectly,
in any contract, sale, purchase, lease or transfer of real or
personal property to which the board of directors of the
Authority is party;
  (b) In connection with services performed within the scope of
official duties, solicit or accept money or any other thing of
value in addition to the expenses paid to the director by the
Authority; or

  (c) Offer money or any other thing of value for or in
consideration of obtaining an appointment, promotion or privilege
in employment with the Authority.
  (2) Any director who willfully violates any provision of this
section shall, in the discretion of the board, forfeit the office
of the director. Any contract or agreement made in contravention
of this section may be declared void by the board. Nothing in
this section shall be considered to abrogate or limit the
applicability of any federal or state law that may be violated by
any action proscribed by this section. + }
                               { +
ARTICLE XII + }
                               { +
Financial Plans and Reports + }
   { +  The board of directors of the authority shall make and
publish, as necessary, financial plans and detailed annual
budgets for the construction, operation and maintenance of the
South North light rail transit line, including a Sources of Funds
plan. The board may also prepare, publish and distribute such
other public reports and informational materials as it may deem
necessary or desirable. + }
                               { +
ARTICLE XIII + }
                               { +
Operation and Maintenance Costs + }
   { +  (1) The Authority shall annually determine the amount of
the South North light rail transit line's operating and
maintenance costs and the Authority's administrative costs that
shall be contributed to the Authority by C-TRAN and Tri-Met. The
amount to be collected from C-TRAN and Tri-Met shall be based
upon all relevant factors, including but not limited to,
ridership origination and destination and relative usage of the
South North light rail transit line.
  (2) After establishing the amount to be allocated to C-TRAN and
Tri-Met, the Authority shall levy an annual assessment on C-TRAN
and Tri-Met for the purpose of financing the management,
administration, operation, maintenance, repair, expansion, and
related activities for facilities, equipment, systems or
improvements included in the South North light rail transit
line. + }
                               { +
ARTICLE XIV + }
                               { +
Capital Contributions + }
   { +  (1) The Authority shall enter into a financing plan
agreement with C-TRAN, Tri-Met and any private entities providing
construction financing for the South North light rail transit
line or any segment thereof, which agreement shall establish a
financing plan for the construction phases of the South North
light rail transit line, including each segment thereof. The
financing plan agreement shall specify the obligations of each
party to pay a portion of the construction costs of the South
North light rail transit line, including the estimated total
construction costs, the percentage share of each party of the
total construction costs, the estimated schedule for the payment
of each party's percentage share and the planned source of funds
from which each party intends to fund its share of the total
construction costs. The financing plan agreement, among other
matters, may:
  (a) Separately specify each party's obligation for each segment
of the South North light rail transit line;
  (b) Limit the liability of C-TRAN and Tri-Met to particular
funding sources identified in the financing plan agreement;
  (c) Make provisions for any interim financing, credit
enhancements or guarantees to be provided by C-TRAN, Tri-Met or
any other parties in order to supply the funds needed to
construct the South North light rail transit line in accordance
with the construction schedule established in the financing plan
agreement; or
  (d) Provide that all or a portion of one party's obligations
shall be satisfied by making payments to another party to the
agreement in order to pay or reimburse the construction or
financing costs incurred by the payee.
  (2) The financing plan agreement shall provide that C-TRAN and
Tri-Met shall each retain full power and authority to pledge
their respective sources of funds as security for any bonds,
notes or other obligations issued thereby, and for any credit
enhancements obtained in connection with any such bonds, notes or
other obligations, in order to provide interim or permanent
financing for the construction costs of the South North light
rail transit line. The financing plan agreement shall not in any
way or to any extent create a pledge of or a lien or encumbrance
on any funds of C-TRAN or Tri-Met.
  (3) C-TRAN and Tri-Met singly or together shall enter into one
or more Full Funding Grant Agreements with the Federal Transit
Administration, or its successor, to establish the federal
funding commitment for the South North light rail transit line,
or any segments thereof, and the terms and conditions for
obtaining the federal funds. The Authority shall cause the South
North light rail transit line, and each segment thereof, to be
designed, engineered and constructed in a manner consistent with
the applicable Full Funding Grant Agreement, applicable state
laws and the terms and conditions of the financing plan
agreement.
  (4) The financing plan agreement may be amended from time to
time by the Authority, C-TRAN and Tri-Met to the extent such
parties determine any amendment is necessary or beneficial. Any
such amendment shall require the consent of any private entity
that is a party to the financing plan agreement only if and to
the extent such consent is required under the terms of the
financing plan agreement. + }
                               { +
ARTICLE XV + }
                               { +
Indemnification + }
   { +  (1) C-TRAN shall hold Tri-Met and the Authority harmless
and indemnify Tri-Met and the Authority for any and all
liability, settlements, losses, costs, damages and expenses in
connection with any action, suit or claim resulting from C-TRAN's
negligent errors, omissions or acts in carrying out the purposes
of this compact.
  (2) Tri-Met shall hold C-TRAN and the Authority harmless and
indemnify C-TRAN and the Authority for any and all liability,
settlements, losses, costs, damages and expenses in connection
with any action, suit or claim resulting from Tri-Met's negligent
errors, omissions or acts in carrying out the purposes of this
compact.
  (3) The Authority shall hold C-TRAN and Tri-Met harmless and
indemnify C-TRAN and Tri-Met for any and all liability,
settlements, losses, costs, damages and expenses in connection
with any action, suit or claim resulting from the Authority's
negligent errors, omissions or acts in carrying out the purposes
of this compact. + }
                               { +
ARTICLE XVI + }
                               { +
Fares + }
   { +  Fares will be established and collected by C-TRAN and
Tri-Met for trips originating within their respective districts.
Payment of those fares will be honored by the Authority as
payment for passage on the South North light rail transit
line. + }
                               { +
ARTICLE XVII + }
                               { +
Insurance + }
   { +  The board of directors of the Authority may self-insure
or purchase insurance and pay the premiums therefor against loss
or damage, against liability for injury to persons or property
and against loss of revenue from any cause whatsoever. Such
insurance coverage shall be in such form and amount as the board
may determine, subject to the requirements of any agreement or
other obligations of the Authority. + }
                               { +
ARTICLE XVIII + }
                               { +
Tax Exemption + }
   { +  (1) It is hereby declared that the creation of the
Authority and the carrying out of the purposes of the Authority
is in all respects for the benefit of all people of the signatory
states. It is further declared that the Authority and the board
of directors are performing a public purpose and an essential
government function, including, without limitation, proprietary,
governmental and other functions, in the exercise of the powers
conferred by this compact. Therefore, the Authority and the board
of directors shall not be required to pay taxes or assessments
upon any of the property under its jurisdiction, control,
possession or supervision or upon its activities in the operation
and maintenance of the South North light rail transit line or
upon any revenues therefrom.
  (2) When C-TRAN or Tri-Met, acting under an agreement with the
Authority pursuant to Article IV of this compact, possesses or
controls property or conducts activities in the operation and
maintenance of the South North light rail transit line:
  (a) C-TRAN and Tri-Met shall remain subject to the tax laws of
their respective states with respect to such property located, or
activities conducted, within their respective states;
  (b) C-TRAN shall be subject to the tax laws of the State of
Oregon with respect to such property located, or activities
conducted, in Oregon only to the extent Tri-Met would be subject
to those laws if Tri-Met rather than C-TRAN possessed or
controlled the property or conducted the activity; and
  (c) Tri-Met shall be subject to the tax laws of the State of
Washington with respect to such property located, or activities
conducted, in Washington only to the extent C-TRAN would be
subject to those laws if C-TRAN rather than Tri-Met possessed or
controlled the property or conducted the activity. + }
                               { +
ARTICLE XIX + }
                               { +
Applicable Laws + }
   { +  The Authority shall be both subject to and exempt from
certain laws of the States of Oregon and Washington as concurred
in by the legislature of each state, respectively. Where the laws
of the States of Oregon and Washington are not made inapplicable
to the Authority by legislative action, the laws of the
respective states will continue to apply to activities occurring
within each state's geographical boundaries. However, the
following laws shall apply generally to the Authority regardless
of the state in which the activities governed by the laws occur.
The following laws shall govern exclusively the matters they
address, and the provisions of corresponding or analogous laws of
either signatory shall have no effect:
  (1) Federal Administrative Procedures Act (5 U.S.C. 500 et
seq.), as amended from time to time, or any successor
legislation;
  (2) Federal Miller Act (40 U.S.C. 270a et seq.), as amended
from time to time, or any successor legislation;
  (3) Federal prevailing wage law (40 U.S.C. 276a et seq.), as
amended from time to time, or any successor legislation;
  (4) Federal rules on disadvantaged business enterprises (49
C.F.R. Part 23), as amended from time to time, or any successor
legislation;
  (5) Federal competitive bidding laws (41 U.S.C. 251 et seq.),
as amended from time to time, or any successor legislation; and
  (6) ORS 30.260 to 30.300 (1993 Edition). + }
                               { +
ARTICLE XX + }
                               { +
Jurisdiction of Courts + }
   { +  (1) The United States District Courts shall have original
jurisdiction, concurrent with the courts of Oregon and
Washington, of all actions brought by or against the Authority
and shall enforce subpoenas issued under this Compact. Any such
action initiated in a state court shall be removable to the
appropriate United States District Court in the manner provided
by the Act of June 25, 1948, as amended (28 U.S.C. Ý1446).
  (2) All laws or parts of laws of the United States and of the
signatory states that are inconsistent with the provisions of
this compact are hereby amended for the purpose of this compact
to the extent necessary to eliminate such inconsistencies and to
carry out the provisions of this compact. + }
                               { +
ARTICLE XXI + }
                               { +
Severability + }
   { +  If any provision of this compact, or its application to
any person or circumstance, is held to be invalid, all other
provisions of this compact, and the application of all of its
provisions to all other persons and circumstances, shall remain
valid and to this end, the provisions of this compact are
severable. + }
                               { +
ARTICLE XXII + }
                               { +
Effective Date + }
   { +  This compact shall take effect, and the board of the
Authority may exercise its authority pursuant to the compact when
it has been ratified by the federal Congress and adopted by both
signatories, and the six directors of the board have been
appointed. The effective date of this compact shall be the date
of the establishment of the board of directors of the
Authority. + }

_________________________________________________________________
  **************************** SECTION 34.  { + (1) A mass
transit district established under ORS 267.010 to 267.390, when
operating under the authority or direction of the Columbia River
Light Rail Transit Authority established under the Columbia River
Light Rail Transit Compact ratified by section 32 of this Act,
retains all the rights, powers, privileges and immunities
conferred upon the district by ORS 267.010 to 267.390 to the
extent that those rights, powers, privileges and immunities are
consistent with the provisions of the Columbia River Light Rail
Transit Compact.
  (2) A mass transit agency organized under the laws of the State
of Washington, when operating in Oregon under the authority or
direction of the Columbia River Light Rail Transit Authority
established under the Columbia River Light Rail Transit Compact
ratified by section 32 of this Act, may exercise all of the
rights, powers, privileges and immunities conferred upon a mass
transit district by ORS 267.010 to 267.390 to the extent that
those rights, powers, privileges and immunities are consistent

with the provisions of the Columbia River Light Rail Transit
Compact. + }
                               { +
MISCELLANEOUS + }

  **************************** SECTION 35. ORS 480.355 is amended
to read:
  480.355. (1) Notwithstanding ORS 480.345, upon application from
the owner or operator of a nonretail facility, the State Fire
Marshal may issue a conditional use license under which the
nonretail facility may permit persons who are not qualified as
nonretail customers under ORS 480.345 (2) to (4) to dispense
Class 1 flammable liquids at a nonretail facility.
  (2) In issuing a conditional use license, the State Fire
Marshal may waive the nonretail customer requirements of ORS
480.345 (2) to (4), but may not waive safety training
requirements contained in ORS 480.345.
  (3) The State Fire Marshal may issue a conditional use license
under this section if the State Fire Marshal determines that:
  (a) There is no facility where Class 1 flammable liquids are
dispensed by attendants at retail within   { - 10 - }  { +
seven + } miles of the nonretail facility; and
  (b) Other undue hardship conditions exist, as may be determined
by the State Fire Marshal by rule. The State Fire Marshal shall
consider comments of local residents or local government bodies
to determine if undue hardship exists.
  (4) The provisions of ORS 480.345 and 480.350 apply to a
license application made under this section, except those
provisions whose applicability is waived by the State Fire
Marshal under this section.
  (5) The applicant for a conditional use license shall bear the
burden of proof that the requirements of this section and of any
rules of the State Fire Marshal adopted pursuant to this section
are satisfied.
  (6) The State Fire Marshal shall investigate any application
made under this section and hold at least one public hearing to
determine if the conditional use license should be issued.
  (7) Any person who makes application as provided for in this
section, and whose application is denied, shall be entitled to a
hearing upon request. The hearing shall be conducted as a
contested case hearing pursuant to the applicable provisions of
ORS 183.413 to 183.470.
  (8) Judicial review of an order made after a hearing under
subsection (7) of this section shall be as provided in ORS
183.480 to 183.497 for judicial review of contested cases.

                               { +
REGIONAL PROBLEM SOLVING + }

  **************************** SECTION 36.  { + Sections 36a to
36g of this Act are added to and made a part of ORS chapter
197. + }
  **************************** SECTION 36a.  { + (1) Up to four
pilot programs of the collaborative regional problem-solving
process described in sections 36b and 36c of this 1995 special
session Act shall be established in counties or regions
geographically distributed throughout the state.
  (2) The Land Conservation and Development Commission shall
submit an application to the Emergency Board for funds sufficient
to initiate pilot programs to carry out the collaborative
regional problem-solving process as established in sections 36b
and 36c of this 1995 special session Act. + }
  **************************** SECTION 36b. { +  (1) Local
governments and those special districts that provide urban
services may enter into a collaborative regional problem-solving
process. A collaborative regional problem-solving process is a
planning process directed toward resolution of land use problems
in a region. The process must offer an opportunity to participate
with appropriate state agencies and all local governments within
the region affected by the problems that are the subject of the
problem-solving process.  The process must include:
  (a) An opportunity for involvement by other stakeholders with
an interest in the problem; and
  (b) Efforts among the collaborators to agree on goals,
objectives and measures of success for steps undertaken to
implement the process as set forth in section 36c of this 1995
special session Act.
  (2) As used in sections 36a to 36h of this 1995 special session
Act, 'region' means an area of one or more counties, together
with the cities within the county, counties, or affected portion
of the county. + }
  **************************** SECTION 36c.  { + (1) Upon
invitation by the local governments in a region, the Land
Conservation and Development Commission and other state agencies
may participate with the local governments in a collaborative
regional problem-solving process.
  (2) Following the procedures set forth in this subsection, the
commission may acknowledge amendments to comprehensive plans and
land use regulations, or new land use regulations, that do not
fully comply with the rules of the commission that implement the
statewide planning goals, without taking an exception, upon a
determination that:
  (a) The amendments or new provisions are based upon agreements
reached by all local participants, the commission and other
participating state agencies, in the collaborative regional
problem-solving process;
  (b) The regional problem-solving process has included agreement
among the participants on:
  (A) Regional goals for resolution of each regional problem that
is the subject of the process;
  (B) Optional techniques to achieve the goals for each regional
problem that is the subject of the process;
  (C) Measurable indicators of performance toward achievement of
the goals for each regional problem that is the subject of the
process;
  (D) A system of incentives and disincentives to encourage
successful implementation of the techniques chosen by the
participants to achieve the goals;
  (E) A system for monitoring progress toward achievement of the
goals; and
  (F) A process for correction of the techniques if monitoring
indicates that the techniques are not achieving the goals; and
  (c) The agreement reached by regional problem-solving process
participants and the implementing plan amendments and land use
regulations conform, on the whole, with the purposes of the
statewide planning goals.
  (3) A local government that amends an acknowledged
comprehensive plan or land use regulation or adopts a new land
use regulation in order to implement an agreement reached in a
regional problem-solving process shall submit the amendment or
new regulation to the commission in the manner set forth in ORS
197.628 to 197.644 for periodic review or set forth in ORS
197.251 for acknowledgment.
  (4) The commission shall have exclusive jurisdiction for review
of amendments or new regulations described in subsection (3) of
this section. A participant or stakeholder in the collaborative
regional problem-solving process shall not raise an issue before
the commission on review that was not raised at the local level.
  (5) If the commission denies an amendment or new regulation
submitted pursuant to subsection (3) of this section, the
commission shall issue a written statement describing the reasons

for the denial and suggesting alternative methods for
accomplishing the goals on a timely basis.
  (6) If, in order to resolve regional land use problems, the
participants in a collaborative regional problem-solving process
decide to devote agricultural land or forestland, as defined in
the statewide planning goals, to uses not authorized by those
goals, the participants shall choose land that is not part of the
region's commercial agricultural or forestland base, or take an
exception to those goals pursuant to ORS 197.732. To identify
land that is not part of the region's commercial agricultural or
forestland base, the participants shall consider the
recommendation of a committee of persons appointed by the
affected county, with expertise in appropriate fields, including
but not limited to farmers, ranchers, foresters and soils
scientists and representatives of the State Department of
Agriculture, the State Department of Forestry and the Department
of Land Conservation and Development.
  (7) The Governor shall require all appropriate state agencies
to participate in the collaborative regional problem-solving
process. + }
  **************************** SECTION 36d.  { + In addition to
the provisions of ORS 197.744, the Land Conservation and
Development Commission may modify an approved work program when a
local government has agreed to participate in a collaborative
regional problem-solving process pursuant to sections 36b and 36c
of this 1995 special session Act. + }
  **************************** SECTION 36e.  { + The
collaborative regional problem-solving process described in
sections 36b and 36c of this 1995 special session Act shall be
conducted only to the extent funds are available to the The Land
Conservation and Development Commission. + }
  **************************** SECTION 36f.  { + Of the moneys
appropriated to the Emergency Board for the biennium beginning
July 1, 1995, the board shall allocate $1,000,000, upon
application of the Land Conservation and Development Commission,
for the purpose of implementing collaborative regional
problem-solving pilot programs as described in sections 36a
through 36c of this 1995 special session Act. + }
  **************************** SECTION 36g.  { + Sections 36a to
36f of this 1995 special session Act are repealed December 31,
1998. + }
  **************************** SECTION 36h. ORS 197.717 is
amended to read:
  197.717. (1) State agencies shall provide technical assistance
to local governments in:
  (a) Planning and zoning land adequate in amount, size,
topography, transportation access and surrounding land use and
public facilities for the special needs of various industrial and
commercial uses;
  (b) Developing public facility plans; and
  (c) Streamlining local permit procedures.
  (2) The Economic Development Department shall provide a local
government with 'state and national trend' information to assist
in compliance with ORS 197.712 (2)(a).
  (3) The  { + Land Conservation and Development + } Commission
shall develop model ordinances to assist local governments in
streamlining local permit procedures.
   { +  (4) The Department of Land Conservation and Development
and the Economic Development Department shall establish a joint
program to assist rural communities with economic and community
development services. The assistance shall include, but not be
limited to, grants, loans, model ordinances and technical
assistance. The purposes of the assistance are to remove
obstacles to economic and community development and to facilitate
that development. The departments shall give priority to
communities with high rates of unemployment. + }
                               { +
SB 889 + }

  **************************** SECTION 37.  { + Sections 37a to
37c of this Act are added to and made a part of ORS 468B.200 to
468B.230. + }
  **************************** SECTION 37a.  { + As used in
sections 37b to 37d of this 1995 special session Act, 'person'
does not include any local, state or federal agency. + }
  **************************** SECTION 37b.  { + (1) Prior to
conducting an investigation of a confined animal feeding
operation under ORS 468B.217 on the basis of a complaint, the
State Department of Agriculture shall:
  (a) Require the person making the complaint to specify the
complaint in writing; and
  (b) Determine which provision of ORS chapter 468 or 468B, which
rule adopted under ORS chapter 468 or 468B or which permit issued
under ORS chapter 468 or 468B the operator of the confined animal
feeding operation may have violated.
  (2) If, upon investigation under ORS 468B.217 on the basis of a
complaint received under subsection (1) of this section, the
State Department of Agriculture determines that a confined animal
feeding operation has not violated a provision of ORS chapter 468
or 468B, a rule adopted under ORS chapter 468 or 468B or the
conditions of a permit issued under ORS chapter 468 or 468B, the
State Department of Agriculture shall require that any additional
complaint filed by the same person in the same calendar year
shall be accompanied by a security deposit of $100. If, after
investigation, the State Department of Agriculture determines
that a violation has occurred, the security deposit shall be
returned to the person who filed the complaint. If the State
Department of Agriculture determines that a violation has not
occurred, the security deposit shall be forfeited. + }
  **************************** SECTION 37c.  { + Notwithstanding
sections 37a and 37b of this 1995 special session Act, the State
Department of Agriculture may investigate at any time any
complaint if the State Department of Agriculture determines that
the violation alleged in the complaint may present an immediate
threat to the public health or safety. + }

                               { +
HB 2612 + }

  **************************** SECTION 38.  { + Sections 38a to
38e of this Act are added to and made a part of ORS chapter
634. + }
  **************************** SECTION 38a.  { + The Legislative
Assembly hereby determines that the citizens of this state
benefit from a system of safe, effective and scientifically sound
pesticide regulation. The Legislative Assembly further finds that
a uniform, statewide system of pesticide regulation that is
consistent, coordinated and comports with both federal and state
technical expertise is essential to the public health, safety and
welfare and that local regulation of pesticides does not
materially assist in achieving these benefits. + }
  **************************** SECTION 38b.  { + No city, town,
county or other political subdivision of this state shall adopt
or enforce any ordinance, rule or regulation regarding pesticide
sale or use, including but not limited to:
  (1) Labeling;
  (2) Registration;
  (3) Notification of use;
  (4) Advertising and marketing;
  (5) Distribution;
  (6) Applicator training and certification;
  (7) Licensing;
  (8) Transportation;
  (9) Packaging;
  (10) Storage;
  (11) Disclosure of confidential information; or
  (12) Product composition. + }
  **************************** SECTION 38c.  { + Notwithstanding
section 38b of this 1995 special session Act, a city, town,
county or other political subdivision of this state may adopt a
policy regarding the use of pesticides on property owned by the
city, town, county or other political subdivision adopting the
policy. + }
  **************************** SECTION 38d.  { + Nothing in
section 38b of this 1995 special session Act shall limit the
authority of a city, town, county or other political subdivision
of this state to adopt or enforce a local ordinance, rule or
regulation strictly necessary to comply with:
  (1) The Uniform Building Code published by the International
Conference of Building Officials, as amended and adopted by the
Director of the Department of Consumer and Business Services;
  (2) A uniform fire code; or
  (3) Any requirement of a state or federal statute or regulation
pertaining to pesticides. + }
  **************************** SECTION 38e.  { + In administering
ORS chapter 634, the State Department of Agriculture shall
consider any concern raised by a city, town, county or other
political subdivision of the state regarding the regulation of
pesticides. + }

                               { +
SB 160 + }

  **************************** SECTION 39. ORS 527.620 is amended
to read:
  527.620. As used in ORS 527.610 to 527.770, 527.990 and
527.992:
  (1) 'Board' means the State Board of Forestry.
    { - (2) 'Clear-cut' means any harvest unit in western Oregon
that leaves fewer than 50 trees per acre that are
well-distributed over the unit and that measure at least 11
inches at DBH or that measure less than 40 square feet of basal
area per acre. 'Clear-cut' means any harvest unit in eastern
Oregon that leaves fewer than 15 trees per acre that are
well-distributed over the unit and that measure at least 10
inches at DBH. For purposes of this subsection, no tree shall be
counted unless the top one-third of the bole of the tree supports
a green, live crown.  For purposes of computing basal area, trees
larger than 20 inches shall be considered 20-inch trees. - }
   { +  (2) 'Harvest type 1' means an operation that requires
reforestation but does not require wildlife leave trees. A
harvest type 1 is an operation that leaves a combined stocking
level of free to grow seedlings, saplings, poles and larger trees
that is less than the stocking level established by rule of the
board which represents adequate utilization of the productivity
of the site.
  (3) 'Harvest type 2' means an operation that requires wildlife
leave trees but does not require reforestation. A harvest type 2
does not require reforestation because it has an adequate
combined stocking of free to grow seedlings, saplings, poles and
larger trees, but which leaves:
  (a) On Cubic Foot Site Class I, II or III, fewer than 50
11-inch DBH trees or less than an equivalent basal area in larger
trees, per acre;
  (b) On Cubic Foot Site Class IV or V, fewer than 30 11-inch DBH
trees or less than an equivalent basal area in larger trees, per
acre; or

  (c) On Cubic Foot Site Class VI, fewer than 15 11-inch DBH
trees or less than an equivalent basal area in larger trees, per
acre.
  (4) 'Harvest type 3' means an operation that requires
reforestation and requires wildlife leave trees. This represents
a level of stocking below which the size of operations is limited
per ORS 527.740 and 527.750. + }
    { - (3) - }   { + (5) + } 'Cumulative effects' means the
impact on the environment which results from the incremental
impact of the forest practice when added to other past, present
and reasonably foreseeable future forest practices regardless of
what governmental agency or person undertakes such other actions.
    { - (4) - }   { + (6) + } 'DBH' means the diameter at breast
height which is measured as the width of a standing tree at four
and one-half feet above the ground, on the uphill side.
   { +  (7) 'Edge of the roadway' means:
  (a) For interstate highways, the fence.
  (b) For all other state highways, the outermost edge of
pavement, or if unpaved, the edge of the shoulder. + }
    { - (5) - }   { + (8) + } 'Forestland' means land which is
used for the growing and harvesting of forest tree species,
regardless of how the land is zoned or taxed or how any state or
local statutes, ordinances, rules or regulations are applied.
    { - (6) - }   { + (9) + } 'Forest practice' means any
operation conducted on or pertaining to forestland, including but
not limited to:
  (a) Reforestation of forestland;
  (b) Road construction and maintenance;
  (c) Harvesting of forest tree species;
  (d) Application of chemicals; and
  (e) Disposal of slash.
    { - (7) - }   { + (10) + } 'Forest tree species' does not
include:
  (a) Christmas trees on land used solely for the production of
cultured Christmas trees as defined in ORS 215.203 (3).
  (b) Hardwood timber, including but not limited to hybrid
cottonwood, which is:
  (A) Grown or growing on land which has been prepared by
intensive cultivation methods and which is cleared of competing
vegetation for at least three years after tree planting;
  (B) Of a species marketable as fiber for inclusion in the '
furnish' for manufacturing paper products;
  (C) Harvested on a rotation cycle within   { - 10 - }  { +
12 + } years after planting; and
  (D) Subject to intensive agricultural practices such as
fertilization, insect and disease control, cultivation and
irrigation.
    { - (8) - }   { + (11) + } 'Landowner' means any individual,
combination of individuals, partnership, corporation or
association of whatever nature that holds an ownership interest
in forestland, including the state and any political subdivision
thereof.
    { - (9) - }   { + (12) + } 'Operation' means any commercial
activity relating to the growing or harvesting of forest tree
species.
    { - (10) - }   { + (13) + } 'Operator' means any person,
including a landowner or timber owner, who conducts an operation.
   { +  (14) 'Single ownership' means ownership by an individual,
partnership, corporation, limited liability company, trust,
holding company or other business entity, including the state or
any political subdivision thereof. Single ownership includes
ownership held under different names or titles where the same
individual or individuals, or their heirs or assigns, are
shareholders (other than those of public corporations whose stock
is traded on the open market), partners, business trustees or

officers, or otherwise have an interest in or are associated with
each property. + }
    { - (11) - }   { + (15) + } 'State Forester' means the State
Forester or the duly authorized representative of the State
Forester.
    { - (12) - }   { + (16) + } 'Suitable hardwood seedlings'
means any hardwood seedling that will eventually yield logs or
fiber, or both, sufficient in size and quality for the production
of lumber, plywood, pulp or other forest products.
    { - (13) - }   { + (17) + } 'Timber owner' means any
individual, combination of individuals, partnership, corporation
or association of whatever nature, other than a landowner, that
holds an ownership interest in any forest tree species on
forestland.
    { - (14) - }   { + (18) + } 'Visually sensitive corridor'
means forestland
  { - located within the area - }  extending  { + outward + } 150
feet { + , + } measured on the slope { + , + } from the outermost
 { - right of way boundary - }   { + edge of the roadway + } of a
scenic highway referred to in ORS 527.755 { + , along both sides
for the full length of the highway + }.
   { +  (19) 'Wildlife leave trees' means trees or snags required
to be retained as described in section 39g (1) of this 1995
special session Act. + }
    { - (15) - }   { + (20) + } 'Written plan' means a plan
submitted by an operator, for written approval by the State
Forester, which describes how the operation will be conducted,
including the means to protect resource sites described in ORS
527.710 (3)(a) and information required by ORS 527.745 and
527.750, if applicable.  { +  + }
  **************************** SECTION 39a. ORS 527.670 is
amended to read:
  527.670. (1) The  { + State + } Board  { + of Forestry + }
shall designate the types of operations for which notice shall be
required under this section.
  (2) The board shall determine by rule what types of operations
require a written plan to be approved by the State Forester.
  (3)(a) The board's determination under subsection (2) of this
section shall require a written plan for operations:
  (A) Within one hundred feet of a   { - Class 1 - }  stream
 { + determined by the State Forester to be used by fish or for
domestic use + }, unless the board, by rule, provides that a
written plan is not required because   { - there is no reasonable
likelihood that such operations would damage a resource described
in ORS 527.710 (2), within the riparian management area - }
 { + the proposed operation will be conducted according to a
general vegetation retention prescription described in
administrative rule + };
  (B) Within three hundred feet of a resource site inventoried
pursuant to ORS 527.710 (3)(a); { +  or + }
    { - (C) On lands determined by the State Forester to be
within high risk sites, unless the board, by rule, provides that
a written plan is not required because there is no reasonable
likelihood that such operations would damage a resource described
in ORS 527.710 (2); or - }
    { - (D) - }   { + (C) + }   { - On lands to be clear-cut - }
 { + That will result in harvest type 3 + } in excess of 120
acres pursuant to ORS 527.750.
  (b) Plans submitted under paragraph (a)(C)   { - and (D) - }
of this subsection are not subject to appeal under ORS 527.700
(3).
    { - (c) The board shall adopt rules and standards for which a
written plan may be required for final clear-cut harvest
operations of any stand of an average age less than 40 years. The
written plan for such an operation must address the environmental

consequences of the harvest and the economic costs and
benefits. - }
  (4) The distances set forth in subsection (3)(a)(A) and (B) of
this section are solely for the purpose of defining an area
within which a hearing may be requested under ORS 527.700 and not
the area to be protected by the board's rules adopted pursuant to
ORS 527.710 (3)(c).
  (5) For the purpose of determining the distances set forth in
subsection (3)(a)(A) and (B) of this section 'site' means the
specific resource site and not any additional buffer area.
  (6) An operator, timber owner or landowner, before commencing
an operation, shall notify the State Forester. The notification
shall be on forms provided by the State Forester and shall
include the name and address of the operator, timber owner and
landowner, the legal description of the operating area, and any
other information considered by the State Forester to be
necessary for the administration of the rules promulgated by the
board pursuant to ORS 527.710. Promptly upon receipt of such
notice, the State Forester shall send a copy of the notice to
whichever of the operator, timber owner or landowner did not
submit the notification. The State Forester shall send a copy of
notices involving chemical applications to persons within 10
miles of the chemical application who hold downstream surface
water rights pursuant to ORS chapter 537, if such a person has
requested that notification in writing. The board shall adopt
rules specifying the information to be contained in the notice.
All information filed with the State Forester pertaining to
chemical applications shall be public record.   { - The State
Forester shall also send to the operator, the timber owner and
the landowner a copy of the rules applicable to the proposed
operation. - }
  (7) An operator, timber owner or landowner, whichever filed the
original notification, shall notify the State Forester of any
subsequent change in the information contained in the
notification.
  (8) Within three working days of receipt of a notice or a
written plan filed under subsection (6) or (7) of this section,
the State Forester shall send a copy of the notice or written
plan to any person who requested of the State Forester in writing
that the person be sent copies of notice and written plan and who
has paid any applicable fee established by the State Forester for
such service. The State Forester may establish a fee for sending
copies of notices and written plans under this subsection not to
exceed the actual and reasonable costs. In addition, the State
Forester shall send a copy of the notification to the Department
of Revenue and the county assessor for the county in which the
operation is located, at times and in a manner determined through
written cooperative agreement by the parties involved.
  (9) Persons may submit written comments pertaining to the
operation to the State Forester within 14 calendar days of the
date the notice or written plan was filed with the State Forester
under subsection (2), (6) or (7) of this section. Notwithstanding
the provisions of this subsection, the State Forester may waive
any waiting period for operations not requiring a written plan
under subsection (3) of this section, except those operations
involving aerial application of chemicals.
  (10) Whenever an operator, timber owner or landowner is
required to submit a written plan of operations to the State
Forester under subsection (3)(a)(A) or (B) of this section, the
State Forester shall not approve any such written plan until 14
calendar days following the date the written plan was filed with
the State Forester. An operation may commence upon approval of
the written plan.
  (11)(a) The State Forester shall issue a decision on a written
plan within five working days after the end of the 14-day period
described in subsection (10) of this section.
  (b) If the State Forester fails to issue a decision within five
working days after the end of the 14-day period described in
subsection (10) of this section, the written plan shall be deemed
approved and the operation may be commenced.
  (12) When the operation is required to have a written plan
under subsection (3)(a)(A) or (B) of this section and comments
have been timely filed under subsection (9) of this section
pertaining to the operation requiring a written plan, the State
Forester shall:
  (a) Send a copy of the approved written plan to persons who
submitted timely written comments under subsection (9) of this
section pertaining to the operation; and
  (b) Send to the operator, timber owner and landowner a copy of
the approved written plan and copies of all timely comments
submitted under subsection (9) of this section.
  **************************** SECTION 39b. ORS 527.740 is
amended to read:
  527.740. (1) No   { - clear-cut - }   { + harvest type 3 + }
unit within a single ownership shall exceed 120 acres in size,
except as provided in ORS 527.750.
  (2) No   { - clear-cut - }   { + harvest type 3 + } unit shall
be allowed within 300 feet of the perimeter of a prior
 { - clear-cut - }   { + harvest type 3 + } unit  { + within a
single ownership + } if the combined acreage of the
 { - clear-cut - }   { + harvest type 3 + } areas subject to
regulation under the Oregon Forest Practices Act would exceed 120
acres in size, unless the prior   { - clear-cut - }   { + harvest
type 3 + } unit has been reforested as required by all applicable
regulations and:
  (a) At least   { - 200 healthy conifer or suitable hardwood
seedlings are - }   { + the minimum tree stocking required by
rule is + } established per acre; and either
  (b) The resultant   { - reproduction - }   { + stand of
trees + } has attained an average height of at least four feet;
or
  (c) At least 48 months have elapsed since the   { - seedlings
were planted and the reproduction - }   { + stand was created and
it + } is 'free to grow' as defined by the  { + State + } Board
 { + of Forestry + }.
  (3) Any acreage attributable to riparian areas or to resource
sites listed in ORS 527.710 (3) that is located within a harvest
unit shall not be counted in calculating the size of a
 { - clear-cut - }  { + harvest type 3 + } unit.
  (4) The provisions of this section shall not apply when the
land is being converted to  { + managed + } conifers or managed
hardwoods from brush or   { - understocked hardwoods, - }
 { + hardwood stands that contain less than 80 square feet of
basal area per acre of trees 11 inches DBH or greater + } or when
the   { - clear-cut - }  harvest  { + type 3 + } results from
disasters such as fire, insect infestation, disease, windstorm or
other occurrence that the State Forester determines was beyond
the landowner's control and has substantially impaired
productivity or safety on the unit or jeopardizes nearby
forestland. The prior approval of the State Forester shall be
required for such conversion or   { - clear-cut - }   { + harvest
type 3 + } operations that exceed 120 acres in size.
  (5) The provisions of this section do not apply to any
operation where the operator demonstrates to the State Forester
that:
  (a) The trees are subject to a cutting right created by written
contract prior to October 1, 1990, which provides that the trees
must be paid for regardless of whether the trees are cut, or
subject to a cutting right created by reservation in a deed prior
to October 1, 1990; and


  (b) If the provisions of this section were applied, the cutting
right would expire before all the trees subject to the cutting
right could reasonably be harvested.
  **************************** SECTION 39c. ORS 527.745 is
amended to read:
  527.745. (1) The  { + State + } Board  { + of Forestry + }
shall adopt standards for the reforestation of   { - clear-cut
harvests - }   { + harvest type 1 and harvest type 3 + }. Unless
the board makes the findings for alternate standards under
subsection (2) of this section,   { - and except to the extent
that more stringent reforestation requirements apply under ORS
527.740 (2), - }  the standards for the reforestation of
 { - clear-cuts - }   { + harvest type 1 and harvest type 3 + }
shall include the following:
  (a) Reforestation, including site preparation,   { - of
clear-cut units - }  shall commence within 12 months after the
completion of harvest and shall be completed by the end of the
second planting season after the completion of harvest. By the
end of the fifth growing season after planting or seeding, at
least 200 healthy conifer or suitable hardwood seedlings  { + or
lesser number as permitted by the board by rule, + } shall be
established per acre, well-distributed over the area, which are
'free to grow' as defined by the board.
  (b) Landowners may submit plans for alternate practices that do
not conform to the standards established under paragraph (a) of
this subsection or the alternate standards adopted under
subsection (2) of this section, including but not limited to
variances in the time in which reforestation is to be commenced
or completed or plans to reforest sites by natural reforestation.
Such alternate plans may be approved if the State Forester
determines that the plan will achieve equivalent or better
regeneration results for the particular conditions of the site,
or the plan carries out an authorized research project conducted
by a public agency or educational institution.
  (2) The board, by rule, may establish alternate standards for
the reforestation of   { - clear-cuts - }   { + harvest type 1
and harvest type 3 + }, in lieu of the standards established in
subsection (1) of this section, { +  but in no case can the board
require the establishment of more than 200 healthy conifer or
suitable hardwood seedlings per acre. Such alternate standards
may be adopted + } upon finding that the alternate standards will
better assure the continuous growing and harvesting of forest
tree species and the maintenance of forestland for such purposes,
consistent with sound management of soil, air, water, fish and
wildlife resources based on one or more of the following
findings:
  (a) Alternate standards are warranted based on scientific data
concerning biologically effective regeneration;
  (b) Different standards are warranted for particular geographic
areas of the state due to variations in climate, elevation,
geology or other physical factors; or
  (c) Different standards are warranted for different tree
species, including hardwoods, and for different growing site
conditions.
  (3) Pursuant to ORS 527.710, the board may adopt definitions,
procedures and further regulations to implement the standards
established under subsection (1) of this section, without making
the findings required in subsection (2) of this section, if those
procedures or regulations are consistent with the standards
established in subsection (1) of this section.
  (4) The board shall encourage planting of disease and insect
resistant species in sites infested with root pathogens or where
planting of susceptible species would significantly facilitate
the spread of a disease or insect pest and there are immune or
more tolerant commercial species available which are adapted to
the site.
    { - (5) The requirements of this section apply only to
clear-cuts as defined in ORS 527.620 (2). Nothing in this section
is intended to affect the administration and enforcement of
regulations pertaining to the maintenance of minimum stocking
levels or the reforestation of sites required as a result of
operations other than such clear-cuts. - }
    { - (6) - }   { + (5) + } Notwithstanding subsections (1),
(2) and (3) of this section, in order to remove potential
disincentives to the conversion of underproducing stands, as
defined by the board, or the salvage of stands that have been
severely damaged by wildfire, insects, disease or other factors
beyond the landowner's control, the State Forester may suspend
the reforestation requirements for
  { - final clear-cut harvests - }   { + specific harvest type 1
or harvest type 3 units + } in order to take advantage of the
Forest Resource Trust provisions, or other cost-share programs
administered by the State Forester or where the State Forester is
the primary technical adviser. Such suspension may occur only on
an individual case basis, in writing, based on a determination by
the State Forester that the cost of harvest preparation, harvest,
severance and applicable income taxes, logging, site preparation,
reforestation and any other measures necessary to establish a
 { - free-to-grow - }  { + free to grow + } forest stand will
likely exceed the gross revenues of the harvest. The board shall
adopt rules implementing this subsection establishing the
criteria for and duration of the suspension of the reforestation
requirements.
  **************************** SECTION 39d. ORS 527.750 is
amended to read:
  527.750. (1) Notwithstanding the requirements of ORS 527.740, a
 { - clear-cut - }   { + harvest type 3 + } unit within a single
ownership that exceeds 120 acres but does not exceed 240 acres
may be approved by the State Forester if all the requirements of
this section and any additional requirements established by the
 { + State + } Board  { + of Forestry + } are met. Proposed
 { - clear-cut - }   { + harvest type 3 + } units that are within
300 feet of the perimeter of a prior   { - clear-cut - }
 { + harvest type 3 + } unit, and that would result in a total
combined   { - clear-cut - }  { + harvest type 3 + } area under a
single ownership exceeding 120 acres but not exceeding 240 acres,
may be approved by the State Forester if the additional
requirements are met for the combined
  { - clear-cut - }  area. No   { - clear-cut - }   { + harvest
type 3 + } unit within a single ownership shall exceed 240
contiguous acres. No   { - clear-cut - }  { + harvest type 3 + }
unit shall be allowed within 300 feet of the perimeter of a prior
 { - clear-cut - }   { + harvest type 3 + } unit  { + within a
single ownership + } if the combined acreage of the
 { - clear-cut - }  areas subject to regulation under the Oregon
Forest Practices Act would exceed 240 acres, unless the prior
 { - clear-cut - }   { + harvest type 3 + } unit has been
reforested by all applicable regulations and:
  (a) At least   { - 200 healthy conifer or suitable hardwood
seedlings are - }   { + the minimum tree stocking required by
rule is + } established per acre; and either
  (b) The resultant   { - reproduction - }   { + stand of
trees + } has attained an average height of at least four feet;
or
  (c) At least 48 months have elapsed since the   { - seedlings
were planted and the reproduction - }   { + stand was created and
it + } is 'free to grow' as defined by the board.
  (2) The requirements of this section are in addition to all
other requirements of the Oregon Forest Practices Act and the
rules adopted thereunder. The requirements of this section shall
be applied in lieu of such other requirements only to the extent
the requirements of this section are more stringent. Nothing in
this section shall apply to operations conducted under ORS
527.740 (4) or (5).
  (3) The board shall require that a written plan be submitted
prior to approval of a   { - clear-cut - }   { + harvest type
3 + } operation under this section. The board may establish by
rule any additional standards applying to operations under this
section.
  (4) The State Forester shall approve the   { - clear-cut - }
 { + harvest type 3 + } operation if the proposed
 { - clear-cut - }   { + operation + } would provide better
overall results in meeting the requirements and objectives of the
Oregon Forest Practices Act.
  (5) The board shall specify by rule the information to be
submitted for approval of   { - clear-cut - }   { + harvest type
3 + } operations under this section, including evidence of past
satisfactory compliance with the Oregon Forest Practices Act.
  **************************** SECTION 39e. ORS 527.755 is
amended to read:
  527.755. (1) The following highways are hereby designated as
scenic highways for purposes of the Oregon Forest Practices Act:
  (a) Interstate Highways 5, 84, 205, 405; and
  (b) State Highways 6, 7, 20, 18/22, 26, 27, 30, 31, 34, 35, 36,
38, 42, 58, 62, 66, 82, 97, 101, 126, 138, 140, 199, 230, 234 and
395.
   { +  (2) The purpose of designating scenic highways is to
provide a limited mechanism that maintains roadside trees for the
enjoyment of the motoring public while traveling through
forestland, consistent with ORS 527.630, safety and other
practical considerations. + }
    { - (2) - }   { + (3) The State Board of Forestry, + } in
consultation with the Department of Transportation,   { - the
board - }  shall establish procedures and regulations as
necessary to implement the requirements of   { - subsection
(3) - }   { + subsections (4), (5) and (6) + } of this section,
consistent with   { - the safety of the motoring public - }
 { + subsection (2) of this section + }, including provisions for
alternate plans   { - providing equivalent or better results
within visually sensitive corridors extending 150 feet from the
outermost right of way boundary along both sides and for the full
length of the scenic highways designated in subsection (1) of
this section - } .   { +  Alternate plans that modify or waive
the requirements of subsection (4), (5) or (6) of this section
may be approved when, in the judgment of the State Forester,
circumstances exist such as:
  (a) Modification or waiver is necessary to maintain motorist
safety, protect improvements such as dwellings and bridges, or
protect forest health;
  (b) Modification or waiver will provide additional scenic
benefits to the motoring public, such as exposure of distant
scenic vistas;
  (c) Trees that are otherwise required to be retained will not
be visible to motorists;
  (d) The operation involves a change of land use that is
inconsistent with maintaining a visually sensitive corridor; or
  (e) The retention of timber in a visually sensitive corridor
will result in severe economic hardship for the owner because all
or nearly all of the owner's property is within the visually
sensitive corridor. + }
    { - (3) - }   { + (4) + }(a) For harvest operations within a
visually sensitive corridor, at least 50 healthy trees of at
least 11 inches   { - at - }  DBH, or that measure at least 40
square feet in basal area, shall be temporarily left on each
acre.   { - Harvest areas shall be cleared of major harvest
debris within 30 days of the completion of the harvest or within
60 days of the cessation of active harvesting activity on the

site, regardless of whether the harvest operation is
complete. - }
  (b) Overstory trees initially required to be left under
paragraph (a) of this subsection may be removed when the
reproduction understory reaches an average height of at least 10
feet and has at least   { - 250 - }   { + the minimum number
of + } stems per acre  { +  of free to grow seedlings or saplings
required by the board for reforestation, by rule + }.
  (c)  { + Alternatively, + } when the adjacent stand, extending
from 150 feet from the   { - corridor - }   { + outermost edge of
the roadway + } to 300 feet from the   { - corridor - }
 { + outermost edge of the roadway + }, has attained an average
height of at least 10 feet and has at least
  { - 200 - }   { + the minimum number of + } stems per acre
 { + of free to grow seedlings or saplings required by the board
for reforestation, by rule, + } or at least 40 square feet of
basal area  { + per acre + }, no trees are required to be left in
the visually sensitive corridor, or trees initially required to
be left under paragraph (a) of this subsection may be removed.
 { - Harvest areas within the visually sensitive corridor shall
be cleared of major harvest debris within 30 days of the
completion of the harvest or within 60 days of the cessation of
active harvesting activity on the site, regardless of whether the
harvest operation is complete. Reforestation shall be completed
by the end of the first planting season after the completion of
harvest. A minimum of 400 trees per acre shall be planted. By the
end of the fifth growing season after the completion of planting,
at least 250 healthy conifer seedlings shall be established per
acre, well-distributed over the area, which are 'free to grow' as
defined by the board. - }  When harvests within the visually
sensitive corridor are carried out under this paragraph the
adjacent stand, extending from 150 feet from the
  { - corridor - }   { + outermost edge of the roadway + } to 300
feet from the
  { - corridor - }   { + outermost edge of the roadway + }, shall
not be   { - clear-cut - }  { + reduced below the minimum number
of stems per acre of free to grow seedlings or saplings at least
10 feet tall required by the board for reforestation, by rule, or
below 40 square feet of basal area per acre + } until the
adjacent visually sensitive corridor has been reforested as
required under   { - this paragraph - }   { + subsection (6) of
this section + } and the stand has attained an average height of
at least 10 feet and has at least   { - 250 - }   { + the minimum
number of + } stems per acre.
   { +  (5) Harvest areas within a visually sensitive corridor
shall be cleared of major harvest debris within 30 days of the
completion of the harvest, or within 60 days of the cessation of
active harvesting activity on the site, regardless of whether the
harvest operation is complete.
  (6) Notwithstanding the time limits established in ORS 527.745
(1)(a), when harvesting within a visually sensitive corridor
results in a harvest type 1 or harvest type 3, reforestation
shall be completed by the end of the first planting season after
the completion of the harvest. All other provisions of ORS
527.745 shall also apply to harvest type 1 or harvest type 3
within visually sensitive corridors. + }
    { - (4) - }   { + (7) + } Landowners and operators shall not
be liable for injury or damage caused by trees left within the
visually sensitive corridor for purposes of fulfilling the
requirements of this section, when carried out in compliance with
the provisions of the Oregon Forest Practices Act.
   { +  (8) Harvest on single ownerships less than five acres in
size are exempt from this section. + }
  **************************** SECTION 39f.  { + Section 39g of
this Act is added to and made a part of ORS 527.610 to
527.770. + }
  **************************** SECTION 39g.  { + (1) In a harvest
type 2 or harvest type 3 unit exceeding 25 acres, in order to
contribute to the overall maintenance of wildlife, nutrient
cycling, moisture retention and any other resource benefits of
retained wood, the operator shall leave, on average per acre
harvested, at least:
  (a) Two snags or two green trees at least 30 feet in height and
11 inches DBH or larger, at least 50 percent of which are
conifers; and
  (b) Two downed logs or downed trees, at least 50 percent of
which are conifers, that each comprise at least 10 cubic feet
gross volume and are no less than six feet long. One downed
conifer or suitable hardwood log of at least 20 cubic feet gross
volume and no less than six feet long may count as two logs.
  (2) In meeting the requirements of subsection (1) of this
section, the required snags, trees and logs may be left in one or
more clusters rather than distributed throughout the unit. The
location and distribution of the material shall be in the sole
discretion of the landowner or operator, consistent with safety
and fire hazard regulations. The requirements of subsection (1)
of this section are in addition to all other requirements
pertaining to forest operations and may be met by counting snags,
trees or logs otherwise required to be left in riparian
management areas or resource sites listed in ORS 527.710 (3) only
as a specifically harvest type 2 or harvest type 3 operation if
the plan provides for an equal or greater number of trees or
snags to be left in another harvest type 2 or harvest type 3
operation which, in the opinion of the State Forester, would, in
the aggregate, achieve better overall benefits for wildlife; and
  (3) For harvest type 2 or harvest type 3 operations adjacent to
fish-bearing or domestic use streams, the State Forester may
require up to 25 percent of the green trees required to be left
pursuant to this section to be left in or adjacent to the
riparian management area of the fish-bearing or domestic use
stream if such requirement would provide increased benefits to
wildlife. Such trees shall be in addition to trees otherwise
required by rule to be left in riparian management areas. The
operator shall have sole discretion to determine which trees to
leave, either in or adjacent to a riparian management area,
pursuant to this paragraph.
  (4) When a harvest type 2 or harvest type 3 unit occurs
adjacent to a prior harvest type 2 or harvest type 3 unit,
resulting in a combined total contiguous acreage of harvest type
2 or harvest type 3 on a single ownership exceeding 25 acres, the
snag or tree and downed log retention requirements of subsection
(1) of this section shall apply. + }
  **************************** SECTION 39h. ORS 527.990 is
amended to read:
  527.990. (1) Violation of ORS 527.670 { + , 527.740, 527.750 or
527.755 or section 39g of this 1995 special session Act, + } or
any rule promulgated under ORS 527.710 is punishable, upon
conviction, as a misdemeanor. Each day of operation in violation
of an order issued under ORS 527.680 (3) shall be deemed to be a
separate offense.
  (2) Violation of ORS 527.260 (1) is a misdemeanor. Violation of
ORS 527.260 is punishable, upon conviction, by a fine of not more
than $250 or by imprisonment in the county jail for not more than
60 days, or both.
  **************************** SECTION 39i. ORS 527.992 is
amended to read:
  527.992. (1) In addition to any other penalty provided by law,
any person who fails to comply with any of the following may
incur a civil penalty in the amount adopted under ORS 527.685:
  (a) The requirements of ORS 527.670 { + , 527.740, 527.750 or
527.755 or section 39g of this 1995 special session Act + }.

  (b) The terms or conditions of any order of the State Forester
issued in accordance with ORS 527.680.
  (c) Any rule or standard of the  { + State + } Board  { + of
Forestry + } adopted or issued pursuant to ORS 527.710.
  (d) Any term or condition of a written waiver, or prior
approval granted by, or of a written plan of operation accepted
by the State Forester pursuant to the rules adopted under ORS
527.710.
  (2) Imposition or payment of a civil penalty under this section
shall not be a bar to actions alleging trespass under ORS
105.810, nor to actions under ORS 161.635 or 161.655 seeking to
recover an amount based on the gain resulting from individual or
corporate criminal violations.
  **************************** SECTION 39j.  { + ORS 527.683,
527.685 and 527.687 are added to and made a part of ORS 527.610
to 527.770. + }
  **************************** SECTION 39k. ORS 527.687 is
amended to read:
  527.687. (1) Subject to the notice provisions of ORS 527.683,
any civil penalty under ORS 527.992 shall be imposed in the
manner provided in ORS 183.090.
  (2) In no case shall a hearing requested under ORS 183.090 be
held less than 45 days from the date of service of the notice of
penalty to allow the party to prepare testimony. The hearing
shall be held not more than   { - 90 - }   { + 180 + } days
following issuance of the notice unless all parties agree on an
extension.
  (3) The  { + State + } Board  { + of Forestry + }, by rule, may
delegate to a hearings officer appointed by the State Forester,
upon such conditions as deemed necessary, all or part of the
authority to conduct hearings required by subsection (2) of this
section.
  (4) All civil penalties recovered under ORS 527.610 to 527.770,
527.990 and 527.992 shall be paid to the General Fund.
  **************************** SECTION 39L. ORS 527.630 is
amended to read:
  527.630. (1) Forests make a vital contribution to Oregon by
providing jobs, products, tax base and other social and economic
benefits, by helping to maintain forest tree species, soil, air
and water resources and by providing a habitat for wildlife and
aquatic life. Therefore, it is declared to be the public policy
of the State of Oregon to encourage economically efficient forest
practices that assure the continuous growing and harvesting of
forest tree species and the maintenance of forestland for such
purposes as the leading use on privately owned land, consistent
with sound management of soil, air, water, fish and wildlife
resources and scenic resources within visually sensitive
corridors as provided in ORS 527.755 that assures the continuous
benefits of those resources for future generations of Oregonians.
  (2) It is recognized that operations on forestland are already
subject to other laws and to regulations of other agencies which
deal primarily with consequences of such operations rather than
the manner in which operations are conducted. It is further
recognized that it is essential to avoid uncertainty and
confusion in enforcement and implementation of such laws and
regulations and in planning and carrying out operations on
forestlands.
  (3) To encourage forest practices implementing the policy of
ORS 527.610 to 527.770 and 527.990 and 527.992, it is declared to
be in the public interest to vest in the  { + State + } Board
 { + of Forestry + } exclusive authority to develop and enforce
statewide and regional rules pursuant to ORS 527.710 and to
coordinate with other state agencies and local governments which
are concerned with the forest environment.
  (4) The board may adopt and enforce rules addressing scenic
considerations only in accordance with ORS 527.755.
   { +  (5) The State of Oregon should provide a stable
regulatory environment to encourage investment in private
forestlands. + }
  **************************** SECTION 39m.  { + Section 39n of
this Act is added to and made a part of ORS 527.610 to
527.770. + }
  **************************** SECTION 39n.  { + (1) The
rulemaking authority of the State Board of Forestry under ORS
527.610 to 527.770 consists generally of the following three
types of rules:
  (a) Rules adopted to implement administration, procedures or
enforcement of ORS 527.610 to 527.770 that support but do not
directly regulate standards of forest practices.
  (b) Rules adopted to provide definitions or procedures for
forest practices where the standards are set in statute.
  (c) Rules adopted to implement the provisions of ORS 527.710
(2), (3), (6), (8), (9) and (10) that grant broad discretion to
the board and that set standards for forest practices not
specifically addressed in statute.
  (2) When considering the adoption of a rule, and prior to the
notice required pursuant to ORS 183.335, the board shall
determine which type of rule described in subsection (1) of this
section is being considered.
  (3) If the board determines that a proposed rule is of the type
described in subsection (1)(a) or (b) of this section, or if the
proposed rule is designed only to clarify the meaning of rules
already adopted or to make minor adjustments to rules already
adopted that are of the type described in subsection (1)(c) of
this section, rulemaking may proceed in accordance with ORS
183.325 to 183.410 and is not subject to the provisions of this
section.
  (4) If the board determines that a proposed rule is of the type
described in subsection (1)(c) of this section, and the proposed
rule would change the standards for forest practices, the board
shall describe in its rule the purpose of the rule and the level
of protection that is desired.
  (5) If the board determines that a proposed rule is of the type
described in subsection (1)(c) of this section, including a
proposed amendment to an existing rule not qualifying under
subsection (3) of this section, and the proposed rule would
provide new or increased standards for forest practices, the
board may adopt such a rule only after determining that the
following facts exist and standards are met:
  (a) If forest practices continue to be conducted under existing
regulations, there is monitoring or research evidence that
documents that degradation of resources maintained under ORS
527.710 (2) or (3) is likely;
  (b) If the resource to be protected is a wildlife species, the
scientific or biological status of a species or resource site to
be protected by the proposed rule has been documented using best
available information;
  (c) The proposed rule reflects available scientific
information, the results of relevant monitoring and, as
appropriate, adequate field evaluation at representative
locations in Oregon;
  (d) The objectives of the proposed rule are clearly defined,
and the restrictions placed on forest practices as a result of
adoption of the proposed rule:
  (A) Are to prevent harm or provide benefits to the resource or
resource site for which protection is sought; and
  (B) Are directly related to the objective of the proposed rule
and substantially advance its purpose;
  (e) The availability, effectiveness and feasibility of
alternatives to the proposed rule, including nonregulatory
alternatives, were considered, and the alternative chosen is the
least burdensome to landowners and timber owners, in the
aggregate, while still achieving the desired level of protection;
and
  (f) The benefits to the resource that would be achieved by
adopting the rule are in proportion to the degree that existing
practices of the landowners and timber owners, in the aggregate,
are contributing to the overall resource concern that the
proposed rule is intended to address.
  (6) Nothing in subsection (5) of this section:
  (a) Requires the board to call witnesses;
  (b) Requires the board to allow cross-examination of witnesses;
  (c) Restricts ex parte communications with the board or
requires the board to place statements of such communications on
the record;
  (d) Requires verbatim transcripts of records of proceedings; or
  (e) Requires depositions, discovery or subpoenas.
  (7) If the board determines that a proposed rule is of the type
described in subsection (1)(c) of this section, and the proposed
rule would require new or increased standards for forest
practices, as part of or in addition to the economic and fiscal
impact statement required by ORS 183.335 (2)(b)(E), the board
shall, prior to the close of the public comment period, prepare
and make available to the public a comprehensive analysis of the
economic impact of the proposed rule. The analysis shall include,
but is not limited to:
  (a) An estimate of the potential change in timber harvest as a
result of the rule;
  (b) An estimate of the overall statewide economic impact,
including a change in output, employment and income;
  (c) An estimate of the total economic impact on the forest
products industry and common school and county forest trust land
revenues, both regionally and statewide; and
  (d) Information derived from consultation with potentially
affected landowners and timber owners and an assessment of the
economic impact of the proposed rule under a wide variety of
circumstances, including varying ownership sizes and the
geographic location and terrain of a diverse subset of
potentially affected forestland parcels.
  (8) The provisions of this section do not apply to temporary
rules adopted by the board. + }
  **************************** SECTION 39o. { +  (1) The
provisions of this section apply to rules that are of the type
described in section 39n (1)(c) of this Act that:
  (a) Are adopted or proposed for adoption after the effective
date of this Act; and
  (b) Restrict the harvest of forest tree species, including, but
not limited to, restrictions on:
  (A) The timing or scheduling of harvest;
  (B) The silvicultural prescription; or
  (C) Which trees can be harvested.
  (2)(a) A landowner or timber owner who can prove that
application of a rule or rules of the type described in
subsection (1) of this section to a parcel proposed for a timber
harvest operation will result in more than a 10 percent reduction
in the volume or value of merchantable forest tree species
available for harvest may apply to the State Forestry Department
for approval of an alternate plan that will provide the greatest
level of protection possible for the resources protected under
ORS 527.710 (2) and (3), while reducing the impact on the volume
or value of forest tree species below the 10 percent threshold.
  (b) To qualify for approval of an alternate plan in connection
with the application of a rule or rules described in subsection
(1) of this section, a landowner or timber owner shall first make
written application to the State Forester describing how the
proposed operation is eligible for an alternate plan as described
in paragraph (a) of this subsection.

  (c) If the State Forester denies an application of the type
described in paragraph (a) of this subsection, the landowner or
timber owner seeking approval of an alternate plan may request a
hearing pursuant to ORS 527.700. However, notwithstanding the
time limits for conducting a hearing and issuing a final order
under ORS 527.700 (1), a hearing conducted pursuant to this
paragraph shall be commenced within 45 days after receipt of
request for the hearing and a final order shall be issued within
90 days of the request for the hearing unless all parties agree
to an extension of the time limit.
  (d) In a proceeding under paragraph (c) of this subsection
before the State Forester or the State Board of Forestry, the
landowner or timber owner shall have the burden of proving a
reduction of more than 10 percent in the volume or value of
merchantable forest tree species available for harvest on the
parcel of affected forestland.
  (e) If the State Forester approves an application of the type
described in paragraph (a) of this subsection, the department and
the applicant shall develop and agree upon an alternate plan
involving a combination of regulatory and voluntary compliance
and, to the extent available, nonregulatory incentives that will
provide the greatest level of protection possible for the
resources protected under ORS 527.710 (2) and (3), while reducing
the impact on the volume or value of forest tree species below
the 10 percent threshold.
  (f) If the department and the applicant fail to reach agreement
on an alternate plan pursuant to paragraph (e) of this
subsection, the department shall propose an alternate plan that
achieves the objectives of paragraph (e) of this subsection. If
the applicant disagrees with the alternate plan proposed by the
department, the applicant may request a hearing pursuant to ORS
527.700. However, notwithstanding the time limits for conducting
a hearing and issuing a final order under ORS 527.700 (1), a
hearing conducted pursuant to this paragraph shall be commenced
within 45 days after receipt of request for the hearing and a
final order shall be issued within 90 days of the request for the
hearing unless all parties agree to an extension of the time
limit.
  (3) A landowner or timber owner shall not qualify for an
alternate plan under subsection (2)(a) of this section if the
State Forester determines that the configuration of an
operational unit was designed for the primary purpose of
otherwise qualifying for such an alternate plan. + }
  **************************** SECTION 39p. { +  (1)
Notwithstanding ORS 183.400, only a landowner or timber owner
subject to regulation by a rule adopted after the effective date
of this Act of the type described in section 39n (1)(c) of this
Act, who participated in the rulemaking process before the State
Board of Forestry, may, within 180 days of adoption of the rule,
seek review under ORS 183.400 of either of the following
determinations of the board:
  (a) The determinations made under section 39n (5) of this Act.
  (b) That the provisions of section 39n (4) to (6) of this Act
do not apply to the rule because the rule is of a type described
in section 39n (3) of this Act.
  (2) In addition to the limitations on review under ORS 183.400
(4), in reviewing determinations made under section 39n of this
Act as brought under subsection (1) of this section, the court
shall not declare a rule invalid or remand a rule to the board
unless it finds that the rulemaking record, viewed as a whole,
would not permit a reasonable person to make the same
determination made by the board pursuant to section 39n (3) or
(5) of this Act. The court shall not substitute its judgment for
that of the board as to any determinations made under section 39n
of this Act.

  (3) The rulemaking record for a rule of the type described in
section 39n (1)(c) of this Act is:
  (a) The rule adopted by the board;
  (b) The determinations made by the board pursuant to section
39n (3) or (5) of this Act;
  (c) The written minutes of any advisory committee appointed
under ORS 183.025 (2);
  (d) The principal documents relied upon by the board in
preparing the rule;
  (e) The statement of fiscal impact prepared under ORS 183.335
(2)(b)(E);
  (f) Any written comments or materials submitted by the public;
  (g) A recording or summary of oral submissions received at any
hearings;
  (h) Written materials or reports submitted by the State
Forestry Department; and
  (i) A recording or summary of oral discussions of the board
when the determinations required by section 39n of this Act were
made and the rule was adopted.
  (4) In any judicial proceeding conducted pursuant to this
section, attorney fees and costs shall be awarded to the
prevailing party. + }
  **************************** SECTION 39q.  { + Sections 39o and
39p of this Act are repealed July 1, 1997. + }
  **************************** SECTION 39r. ORS 527.736 is
amended to read:
  527.736. (1) The standards established in ORS 527.740 to
527.750 shall be administered by the State Forester as standards
applying to all operations in the state, including those on
forestland owned by the state or any political subdivision
thereof. Pursuant to ORS 527.710 the  { + State + } Board  { + of
Forestry + } shall adopt, repeal or amend forest practice rules
as necessary to be consistent with and to implement the standards
established in ORS 527.740 to 527.750. { +  Except as provided in
section 39n of this 1995 special session Act, + } nothing in ORS
468B.100 to 468B.110, 477.562, 527.620,   { - 527.630, - }
527.670, 527.690, 527.710, 527.715, 527.722, 527.724 and 527.736
to 527.770 shall affect the powers and duties of the board to
adopt, or the State Forester to administer, all other regulations
pertaining to forest practices under applicable state law.
  (2) Nothing in ORS 527.740 to 527.750 is intended to apply to
cutting of trees that is for growth enhancement treatments, as
defined by the State Forester, such as thinning or precommercial
thinning.
  **************************** SECTION 39s.  { + (1) The State
Board of Forestry shall appoint a task force to identify
nonregulatory means of achieving and maintaining a high level of
stewardship in forestry operations as alternatives to be
preferred over an increased regulatory burden.
  (2) The task force shall:
  (a) Review the current forest practices regulatory program;
  (b) Examine existing forest stewardship incentive programs in
Oregon and other jurisdictions and evaluate these as well as new
and proposed incentives for their viability, recognizing
different land ownership sizes and conditions;
  (c) Study existing and potential tax credits, as well as other
taxing options, evaluating their efficacy in encouraging
long-term stewardship; and
  (d) Consider increases in the state's obligation to collect and
share information or provide other services to encourage and
facilitate good forest stewardship.
  (3) The task force shall make a report to the State Board of
Forestry no later than February 1, 1996, so their initial
recommendations to the board may be reflected in the State
Forestry Department budget and legislation proposed for adoption
by the Sixty-ninth Legislative Assembly. + }
                               { +
HB 3112 + }

  **************************** SECTION 40.  { + Any owner,
operator or lessee of a rifle, pistol, silhouette, skeet, trap,
blackpowder or other shooting range in this state shall be immune
from civil or criminal liability based upon an allegation of
noise or noise pollution so long as:
  (1) The allegation results from the normal and accepted
activity on the shooting range;
  (2) The owner, operator or lessee complied with any applicable
noise control law or ordinance existing at the time construction
of the shooting range began or no noise control law or ordinance
was then existing; and
  (3) The allegation results from activity on the shooting range
occurring between 7 a.m. and 10 p.m. or conducted for law
enforcement training purposes. + }
  **************************** SECTION 40a.  { + The owner,
operator or lessee of a rifle, pistol, silhouette, skeet, trap,
blackpowder or other shooting range in this state shall not be
subject to any action for nuisance and no court in this state
shall enjoin the use or operation of such shooting range on the
basis of noise or noise pollution so long as:
  (1) The allegation results from the normal and accepted
activity on the shooting range;
  (2) The owner, operator or lessee complied with any applicable
noise control law or ordinance existing at the time construction
of the shooting range began or no noise control law or ordinance
was then existing; and
  (3) The allegation results from activity occurring between 7
a.m. and 10 p.m. or conducted for law enforcement training
purposes. + }
  **************************** SECTION 40b.  { + Any local
government or special district ordinance or regulation now in
effect or subsequently adopted that makes a shooting range a
nuisance or trespass or provides for its abatement as a nuisance
or trespass is invalid with respect to a shooting range for which
no action or claim is allowed under sections 40 and 40a of this
Act. + }
  **************************** SECTION 40c. ORS 467.020 is
amended to read:
  467.020.  { + Except as provided in sections 40 and 40a of this
1995 special session Act, + } no person may emit, cause the
emission of, or permit the emission of noise in excess of the
levels fixed therefor by the Environmental Quality Commission
pursuant to ORS 467.030.
  **************************** SECTION 40d. ORS 467.030 is
amended to read:
  467.030. (1) In accordance with the applicable provisions of
ORS 183.310 to 183.550, the Environmental Quality Commission
shall adopt rules relating to the control of levels of noise
emitted into the environment of this state and including the
following:
  (a) Categories of noise emission sources, including the
categories of motor vehicles and aircraft.
  (b) Requirements and specifications for equipment to be used in
the monitoring of noise emissions.
  (c) Procedures for the collection, reporting, interpretations
and use of data obtained from noise monitoring activities.
  (2) The Environmental Quality Commission shall investigate and,
after appropriate public notice and hearing, shall establish
maximum permissible levels of noise emission for each category
established, as well as the method of measurement of the levels
of noise emission.
  (3) The Environmental Quality Commission shall adopt, after
appropriate public notice and hearing, standards for the control
of noise emissions which shall be enforceable by order of the
commission.
   { +  (4) In adopting noise control rules, levels and standards
under this section, the Environmental Quality Commission shall
not adopt any rule that would impose liability for any activity
for which immunity from civil and criminal liability is granted
or for which an action for nuisance is prohibited under sections
40 and 40a of this 1995 special session Act. + }
  **************************** SECTION 40e.  { + The exemption
allowed under sections 40 and 40a of this 1995 special session
Act for shooting activity conducted for law enforcement training
purposes shall be allowed only:
  (1) For up to four nights a month; and
  (2) After the owner, lessee or operator provides notice of the
activity at least one week before the activity occurs by
publication in a newspaper of general circulation in a county in
which the shooting range is located. + }

                               { +
SB 707 + }

  **************************** SECTION 41.  { + Section 41a of
this Act is added to and made a part of ORS chapter 498. + }
  **************************** SECTION 41a.  { + (1) The State
Fish and Wildlife Commission shall issue not more than three
permits annually for activities involving the protection of
juvenile salmonids from cormorants (Phalacrocoracidae) on Oregon
coastal river systems between Cape Falcon and Cascade Head.
  (2) Activities authorized under the permits shall not include
the killing, trapping or other taking of cormorants.
  (3) Persons to whom permits are issued may subcontract with
others for the performance of protection activities. + }
  **************************** SECTION 41b.  { + In addition to
and not in lieu of any other appropriations or moneys made
available by law or from other sources, there is appropriated to
the State Department of Fish and Wildlife, for the biennium
beginning July 1, 1995, out of the General Fund, the amount of
$50,000. Such sum may only be expended in an amount not to exceed
$25,000 per year, to pay permit holders for protection activities
described in section 41a of this Act. + }
  **************************** SECTION 42.  { + It is the intent
of the Legislative Assembly in enacting this Act that if any part
of this Act is held unconstitutional, the remaining parts shall
remain in force. + }
  **************************** SECTION 43. { +  This Act being
necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this
Act takes effect upon passage. + }
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