Chapter 702 Oregon Laws 1999

Session Law

AN ACT

HB 2153

Relating to lottery bonds; appropriating money; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), lottery bonds may be issued:

(a) To provide financial and other assistance, including but not limited to loans and grants, to municipalities, ports and other persons and entities in accordance with the laws governing use of moneys in the Special Public Works Fund created by ORS 285B.455, the Water Fund created by ORS 285B.563, the Safe Drinking Water Revolving Loan Fund created by section 1, chapter 236, Oregon Laws 1999 (Enrolled Senate Bill 403), the Oregon Port Revolving Fund created by ORS 285A.708, the Brownfields Redevelopment Loan Fund created by ORS 285A.188 and the Marine Navigation Improvement Fund created by ORS 777.267.

(b) To fund Oregon's share of the costs of the Columbia River channel deepening project.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The financial and other assistance to municipalities, ports and other persons and entities will assist in the construction, improvement and expansion of infrastructure, community and port facilities and other facilities that comprise the physical foundation for industrial and commercial activity and provide the basic framework for continued and expanded economic opportunities and quality communities throughout Oregon.

(b) The Columbia River channel deepening project is necessary to allow newer, larger steamships access to Oregon and Washington deep draft ports. A deeper shipping channel will allow the Columbia River to continue as a world leader in agricultural exports and as a key trade corridor for farms and businesses throughout Oregon and the region.

(c) Such financial and other assistance to municipalities, ports and other persons and entities and the deepening of the Columbia River channel will therefore promote economic development within this state, and thus the use of net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to provide such financial and other assistance to municipalities, ports and other persons and entities and to pay a portion of the costs of deepening the Columbia River channel is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.

(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(a) of this section for financial and other assistance to municipalities, ports and other persons and entities shall not exceed the sum of $45 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The aggregate principal amount of lottery bonds issued pursuant to subsection (1)(b) of this section for the Columbia River channel deepening project shall not exceed the sum of $17.7 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Economic Development Department. The director shall not request the issuance of lottery bonds pursuant to subsection (1)(b) of this section until a final environmental impact statement has been issued and a record of decisions has been submitted to Congress by the United States Army Corps of Engineers, Congress has authorized the Columbia River channel deepening project, and the Washington sponsors' shares of the costs of the Columbia River channel deepening project have been committed.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Economic Infrastructure Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund. All moneys in the Economic Infrastructure Project Fund are continuously appropriated to the Economic Development Department for any purpose for which moneys in the Special Public Works Fund created by ORS 285B.455 may be used, any purpose for which moneys in the Water Fund created by ORS 285B.563 may be used, any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund created by section 1, chapter 236, Oregon Laws 1999 (Enrolled Senate Bill 403), may be used, any purpose for which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 may be used, any purpose for which moneys in the Brownfields Redevelopment Loan Fund created by ORS 285A.188 may be used and any purpose for which moneys in the Marine Navigation Improvement Fund created by ORS 777.267 may be used. The Director of the Economic Development Department shall allocate the moneys deposited in the Economic Infrastructure Project Fund for the purposes described in this subsection in accordance with the policies developed by the Oregon Economic Development Commission in accordance with ORS 285A.045. However, the director shall transfer from the Economic Infrastructure Project Fund to the Marine Navigation Improvement Fund the proceeds of any lottery bonds sold to finance a portion of the costs of the Columbia River channel deepening project. Upon determining the relative allocation of moneys deposited in the Economic Infrastructure Project Fund among the purposes described in this subsection, the director shall transfer from the Economic Infrastructure Project Fund, and deposit into each of the other funds described in this subsection, the amounts so allocated. Notwithstanding any other provision of law governing the funds described in this subsection, the funds described in this subsection may be credited with moneys transferred from the Economic Infrastructure Project Fund by the director in accordance with this subsection.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (4) of this section and for bond-related costs.

SECTION 2. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), lottery bonds may be issued for the purpose of providing grant moneys to Coos County to be applied by Coos County to the payment of a portion of the costs of designing, acquiring and constructing a natural gas pipeline extending from the existing natural gas pipeline near Roseburg to the Coos Bay and North Bend area, including but not limited to the costs of acquiring all rights of way and interests in real property, machinery, equipment and structures needed for the pipeline.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The economy of Coos County has been depressed in recent years as a result of unfavorable developments in the timber and fishing industries.

(b) The economy of Coos County will benefit from the construction of a natural gas pipeline extending from the existing natural gas pipeline near Roseburg to the Coos Bay and North Bend area because the pipeline will enable Coos County to attract significant industries to locate in the area, thereby increasing opportunities for employment and additional economic activities that will be generated as a result of such industries.

(c) The construction of such a pipeline will therefore promote economic development within this state, and thus the use of net proceeds derived from the operation of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to finance a portion of the costs of such a pipeline is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.

(3) The aggregate principal amount of lottery bonds issued pursuant to subsection (1) of this section shall not exceed the sum of $20 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. No lottery bonds authorized by this section shall be issued until the date upon which the presiding officer of the Board of County Commissioners of Coos County certifies in writing to the Director of the Economic Development Department and the State Treasurer that the conditions set forth in subsection (5) of this section have been satisfied.

(4) Subject to subsection (3) of this section, the lottery bonds authorized by this section shall be issued in the amounts requested by the presiding officer of the Board of County Commissioners of Coos County and as soon as reasonably practicable after the presiding officer requests issuance of the lottery bonds. All requests for the issuance of lottery bonds authorized by this section shall be in writing and sent to the Director of the Economic Development Department and the State Treasurer.

(5) The lottery bonds authorized by this section may not be issued until the electors of Coos County, in accordance with applicable law, authorize Coos County to issue general obligation bonds in an amount which, when added to the maximum amount of the grant to Coos County under this section and any other funds available to Coos County for such purposes, will be sufficient to pay the estimated costs of designing, acquiring and constructing the pipeline.

(6) The net proceeds from the sale of the lottery bonds authorized by this section shall be deposited in the Oregon Unified International Trade Fund. The moneys so deposited in the Oregon Unified International Trade Fund, including investment earnings thereon, are continuously appropriated to the Economic Development Department for the purpose of making a grant to Coos County in accordance with subsection (7) of this section in an amount not to exceed $20 million.

(7) Prior to the issuance of the lottery bonds authorized by this section, the Economic Development Department shall enter into a grant agreement with Coos County. The grant agreement shall:

(a) Provide that, promptly after issuance of lottery bonds authorized by this section and receipt of the net proceeds thereof, the Economic Development Department shall pay to Coos County the net proceeds of the lottery bonds so issued;

(b) Limit aggregate payments to Coos County under the grant agreement to $20 million;

(c) Provide that Coos County hold the moneys received under the grant agreement, and the investment earnings thereon, until necessary to pay a portion of the costs of designing, acquiring and constructing the pipeline described in subsection (1) of this section;

(d) Authorize Coos County to expend the moneys received under the grant agreement from time to time for the purpose of paying a portion of the costs of designing, acquiring and constructing the pipeline described in subsection (1) of this section;

(e) Set forth procedures under which Coos County will account to the Economic Development Department for the purpose of documenting that the moneys received under the grant agreement and investment earnings thereon have been expended by Coos County for the purpose authorized by this section; and

(f) Contain all additional terms, conditions and provisions that the Economic Development Department considers necessary or desirable to carry out the purposes of this section.

SECTION 3. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), lottery bonds may be issued to make grants or loans to Oregon municipalities, businesses and individuals to encourage real estate developments that promote downtown and community center areas, provide affordable housing and other infill developments, and fund projects that promote business opportunities in Oregon's distressed areas and rural communities.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The grants and loans made will be used to fund projects that assist Oregon communities in managing growth, thereby attracting industry and workers and improving Oregon's labor market; and

(b) The projects will bring jobs and economic diversity to Oregon's distressed areas and rural communities.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section shall not exceed the sum of $25 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Housing and Community Services Department.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Community Development Incentive Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (1) of this section and for bond-related costs.

SECTION 4. In accordance with ORS 390.060 to 390.080, the State Parks and Recreation Director may request issuance of lottery bonds to pay for land acquisition for state parks throughout this state or for the design and development of new campgrounds. Preference in the expenditure of lottery bond proceeds under this section shall be given to the acquisition and development of new state park lands in counties not having a state park campground, including but not limited to Washington County. The aggregate principal amount of lottery bonds issued at the request of the State Parks and Recreation Director pursuant to this section and ORS 390.060 to 390.080 shall not exceed $5 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Other than the lottery bonds described in this section, the State Parks and Recreation Director may not request the issuance of lottery bonds under ORS 390.060 to 390.080 during the 1999-2001 biennium.

SECTION 5. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), lottery bonds may be issued to fund projects for the improvement, restoration, upgrading and preservation of systems, facilities and equipment of the Oregon State Fair and Exposition Center.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The activities of the Oregon State Fair and Exposition Center promote Oregon's agricultural industry and its products;

(b) The promotion of agricultural products expands markets, which in turn creates jobs and stimulates economic development of the industry; and

(c) The annual Oregon State Fair draws patrons from throughout the region and creates jobs and substantial economic activity for the Salem and Keizer areas.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section shall not exceed the sum of $10,167,661 and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Oregon State Fair and Exposition Center.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the State Fair Capital Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (1) of this section and for bond-related costs.

SECTION 6. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), lottery bonds may be issued to fund projects for the development and improvement of systems, facilities and equipment of the Oregon Garden in Silverton.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The activities of the Oregon Garden promote Oregon's horticultural industry and its products;

(b) The promotion of horticultural products expands markets, which in turn creates jobs and stimulates economic development of the industry; and

(c) The Oregon Garden will attract tourists from throughout the nation and world and thereby generate substantial economic activity for Marion County.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section shall not exceed the sum of $1 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Economic Development Department.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Economic Infrastructure Project Fund established under section 1 of this 1999 Act.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (1) of this section and for bond-related costs.

SECTION 7. (1) Notwithstanding sections 1 to 4 of this 1999 Act, the aggregate principal amount of lottery bonds issued prior to June 30, 2001, pursuant to sections 1 to 4 of this 1999 Act shall not exceed the sum of $70 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Notwithstanding section 2 of this 1999 Act, if the aggregate principal amount of lottery bonds already issued pursuant to sections 1 to 4 of this 1999 Act plus the aggregate principal amount of additional lottery bonds that the Director of the Economic Development Department expects to request for issuance during the 1999-2001 biennium, pursuant to section 1 of this 1999 Act, plus the aggregate principal amount of additional lottery bonds the presiding officer of the Board of County Commissioners of Coos County requests for issuance pursuant to section 2 (4) of this 1999 Act exceeds, on the date of the presiding officer's request, $70 million plus the amount paid or estimated by the State Treasurer to be necessary to pay bond-related costs, then lottery bonds requested by the presiding officer pursuant to section 2 (4) of this 1999 Act shall not be issued pursuant to that request until after June 30, 2001.

(2) Notwithstanding section 3 of this 1999 Act, if the aggregate principal amount of lottery bonds already issued pursuant to sections 1 to 4 of this 1999 Act plus the aggregate principal amount of additional lottery bonds that the Director of the Economic Development Department and the presiding officer of the Board of County Commissioners of Coos County expect to request for issuance during the 1999-2001 biennium, pursuant to sections 1 and 2 (4) of this 1999 Act, plus the aggregate principal amount of additional lottery bonds the Director of the Housing and Community Services Department requests for issuance pursuant to section 3 (3) of this 1999 Act exceeds, on the date the Director of the Housing and Community Services Department requests the issuance, $70 million plus the amount paid or estimated by the State Treasurer to be necessary to pay bond-related costs, then the lottery bonds requested for issuance by the Director of the Housing and Community Services Department pursuant to section 3 (3) of this 1999 Act shall not be issued pursuant to that request until after June 30, 2001.

(3) Notwithstanding section 4 of this 1999 Act, if the aggregate principal amount of lottery bonds already issued pursuant to sections 1 to 4 of this 1999 Act plus the aggregate principal amount of additional lottery bonds that the Director of the Economic Development Department, the presiding officer of the Board of County Commissioners of Coos County and the Director of the Housing and Community Services Department expect to request for issuance during the 1999-2001 biennium, pursuant to sections 1, 2 (4) and 3 (3) of this 1999 Act, plus the aggregate principal amount of additional lottery bonds the State Parks and Recreation Director requests for issuance pursuant to section 4 of this 1999 Act exceeds, on the date the State Parks and Recreation Director requests the issuance, $70 million plus the amount paid or estimated by the State Treasurer to be necessary to pay bond-related costs, then the lottery bonds requested for issuance by the State Parks and Recreation Director pursuant to section 4 of this 1999 Act shall not be issued pursuant to that request until after June 30, 2001.

(4) Any request for issuance of lottery bonds under sections 1 to 6 of this 1999 Act may be withdrawn at any time prior to issuance of the bonds.

SECTION 8. (1) The State Parks and Recreation Department shall pay amounts required for debt service on lottery bonds issued under section 4 of this 1999 Act from moneys allocated to the department from the Administrative Services Economic Development Fund.

(2) The Economic Development Department shall pay amounts required for debt service on lottery bonds issued during the 1999-2001 biennium under sections 1, 2, 3 and 6 of this 1999 Act from moneys allocated to the department from the Administrative Services Economic Development Fund.

SECTION 9. The Director of the Economic Development Department shall determine during the biennium beginning July 1, 1999, the amount of lottery bonds issued under sections 1 to 4 of this 1999 Act and the amount of lottery bonds that may still be issued during the biennium under the limit in amount of issuance imposed under sections 1 to 7 of this 1999 Act. The director shall inform the State Treasurer when lottery bonds may not be issued because of limits imposed by sections 1 to 7 of this 1999 Act.

SECTION 10. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect July 1, 1999.

Approved by the Governor July 14 ,1999

Filed in the office of Secretary of State July 15, 1999

Effective date July 14, 1999

__________