68th OREGON LEGISLATIVE ASSEMBLY--1996 Special 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 280-3
House Bill 3480
Sponsored by SPECIAL SESSION COMMITTEE ON GOVERNMENT AFFAIRS
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 as
introduced.
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 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 portions of this Act to Supreme Court.
Limits adoption of transportation system development charges by
local governments.
Requires Metro to report to Legislative Assembly on
implementation of South North light rail line.
Establishes Light Rail Oversight Committee.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the funding of transportation projects; creating new
provisions; repealing ORS 197.587, 391.160, 391.165, 391.170,
391.175, 391.180, 391.185, 391.190, 391.195, 391.200, 391.205,
391.210, 391.215, 391.220, 391.225, 391.230 and 391.235 and
sections 10, 16, 16a, 16c, 17, 18, 31a and 31b, chapter 3,
Oregon Laws 1995 (special session); appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Legislative Assembly finds that:
(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 25 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
commenced 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 completion
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 25 of this Act.
(2) The Legislative Assembly declares that the purpose of
sections 1 to 25 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 25 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 25 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 25 of this Act. + }
SECTION 2. { + As used in sections 1 to 25 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 7 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 5 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 7 (1) of this Act for the purposes of
funding essential transportation projects through the
Transportation Equity Account established under section 12 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 5 (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 lottery 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 Administrative Services
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 Administrative Services 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. { + 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 5. { + (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 6 (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 6. { + (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 Administrative Services 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 5 (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 Administrative Services 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 Fund, 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
Administrative Services Economic Development Fund. + }
SECTION 7. { + (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 25 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 12 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 5 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 12 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
bond 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 section 5 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 8. { + Notwithstanding section 7 of this Act, the
State Treasurer shall not issue any light rail lottery bonds
authorized by section 7 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 9. { + 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 14 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 10. { + (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 11. { + (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 12. { + (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 13 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 14 and 16 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 17
of this Act for financing the costs of essential transportation
projects.
(5) As used in this section and section 17 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 13. { + (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 12, 13, 14 and 16 of this Act. + }
SECTION 14. { + 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
12 (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 15. { + 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 14 (1)(b) and (2)(b) of this
Act or those governments' share of the $75 million described in
section 16 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 16. { + (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 17. { + (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 18. { + The authority granted by sections 9 and 12 to
17 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 19. { + (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 fee 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 12 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 20. { + (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 21. { + (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 25 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 22. { + 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 23. { + Section 22 of this Act is repealed July 1,
2019. + }
SECTION 24. { + 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. + }
SECTION 25. { + (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 25 of this Act, including but not
limited to the determination of whether the light rail lottery
bonds authorized by sections 1 to 25 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 25 of this Act, including but not limited to the
determination of whether the light rail lottery bonds authorized
by sections 1 to 25 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 25 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 25 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 expeditiousness. + } { + + }
SECTION 26. { + ORS 197.587, 391.160, 391.165, 391.170,
391.175, 391.180, 391.185, 391.190, 391.195, 391.200, 391.205,
391.210, 391.215, 391.220, 391.225, 391.230 and 391.235 and
sections 10, 16, 16a, 16c, 17, 18, 31a and 31b, chapter 3, Oregon
Laws 1995 (special session), are repealed. + }
SECTION 27. { + 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 28. { + 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 on its
passage. + }
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