Chapter 908 Oregon Laws 1999

Session Law

AN ACT

HB 5038

Relating to lottery funds; appropriating money; limiting expenditures; and declaring an emergency.

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

SECTION 1. Effective July 1, 1999, and thereafter during the 1999-2001 biennium, all lottery revenues available to benefit the public purposes specified in section 4, Article XV, Oregon Constitution, that are in excess of distributions or allocations required by law shall be maintained in the Administrative Services Economic Development Fund.

SECTION 2. All moneys in the Administrative Services Economic Development Fund as of July 1, 1999, and thereafter shall be reserved to meet the commitments of this 1999 Act.

SECTION 3. The allocation of the Administrative Services Economic Development Fund made by this 1999 Act shall supersede, replace and be in lieu of any allocation of such funds in prior years.

ALLOCATIONS

SECTION 4. There is allocated, from the Administrative Services Economic Development Fund to the Economic Development Department, the following amounts for the following purposes:

(1) Administration of department

and community development

programs.................................................. $ 16,045,428

(2) Oregon Community

Development Fund.................................. $ 40,512,304

(3) Oregon Film and Video Office............... $ 948,788

(4) Oregon Tourism Commission................ $ 6,244,165

(5) Payment on infrastructure/

Drinking Water bonds............................ $ 5,598,963

SECTION 5. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Education, for the State School Fund, the amount of $295,962,709.

SECTION 6. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Transportation, the following amount for the following purpose:

For the revenues required to

pay the Westside lottery bonds

and any bonds issued to refund

the Westside lottery bonds, to

fund reserves for any of those

bonds and to pay related costs

of the Department of

Transportation........................................ $ 19,993,390

SECTION 7. (1) The Legislative Assembly finds that the emotional and behavioral problems related to gambling may impose additional costs on state government and on the state economy, such as additional mental health expenditures, increased law enforcement costs and lost economic output. The use of a portion of the net proceeds from lottery games to pay the costs of preventing and treating emotional and behavioral problems related to gambling promotes the creation of jobs and this state's economic development by offsetting and treating the negative economic consequences of such behavior.

(2) In each fiscal quarter, beginning July 1, 1999, there is allocated from the Administrative Services Economic Development Fund to the Problem Gaming Treatment Fund, an amount equal to one percent of the moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund during that fiscal quarter.

(3) There is allocated, from the Problem Gambling Treatment Fund, to the Oregon Department of Administrative Services, for distribution to counties for treatment of gambling addiction, the amount of $5,273,048.

SECTION 8. There is allocated, from the Administrative Services Economic Development Fund, to the Oregon State Fair, for the support of Oregon State Fair facilities bonds, the amount of $1,176,677.

SECTION 9. There is allocated, from the Administrative Services Economic Development Fund, to the Department of Education, for the Oregon Education Fund created under section 8, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), for the purpose of paying, when due, the principal, interest and premium, if any, on outstanding lottery bonds, the amount of $2,313,000.

SECTION 10. There is appropriated and allocated to the Lottery Bond Fund created by section 4, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), for the biennium beginning July 1, 1999, out of the Oregon Education Fund, the amount of $3,131,635 for the purpose of payment by the Department of Education, when due, of the principal, interest and premium, if any, on outstanding education lottery bonds.

LIMITATIONS

SECTION 11. Notwithstanding any other law, the limitation on expenditures established by section 3 (4), chapter 780, Oregon Laws 1999 (Enrolled House Bill 5015), for the biennium beginning July 1, 1999, as the maximum limit for payment of expenses from moneys allocated from the Administrative Services Economic Development Fund to the Economic Development Department for debt service is increased by $147,535 for the Oregon Garden in Silverton.

SECTION 12. Notwithstanding any other law, the limitation on expenditures established by section 3 (5), chapter 780, Oregon Laws 1999 (Enrolled House Bill 5015), for the biennium beginning July 1, 1999, as the maximum limit for payment of expenses from moneys allocated from the Administrative Services Economic Development Fund to the Economic Development Department for the Oregon Tourism Commission is increased by $195,000.

SECTION 13. Notwithstanding any other law, the amount of $4,258,088 is established for the biennium beginning July 1, 1999, as the maximum limit for payment of expenses by the State Scholarship Commission from moneys in the Oregon Education Fund for need grants awarded under ORS 348.260.

SECTION 14. Notwithstanding any other law, the limitation on expenditures established by section 5, chapter 621, Oregon Laws 1997, for the biennium beginning July 1, 1997, as the maximum limit for payment of expenses from moneys allocated from the Administrative Services Economic Development Fund to the Department of Environmental Quality for debt service is increased by $320,596.

DISAPPROPRIATIONS

SECTION 15. On July 1, 1999, the allocation for the 1997-1999 biennium from the Administrative Services Economic Development Fund made by section 10, chapter 868, Oregon Laws 1997, to the Department of Environmental Quality for Orphan Site Cleanup, State Revolving Loan Fund and Assessment Deferral Loan Program is reduced by $1,026,475 and such amount is transferred to the Administrative Services Economic Development Fund.

ADJUSTMENTS

SECTION 16. (1) The Oregon Department of Administrative Services shall establish by rule a process for allocating available moneys in the Administrative Services Economic Development Fund on a quarterly basis to fulfill the biennial allocations made in this 1999 Act. Except as provided in subsection (2) of this section, all quarterly allocations shall be set at one-eighth of the biennial allocations.

(2) If, in any quarter, the moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund are insufficient to pay for the quarterly allocations established under this 1999 Act, the Oregon Department of Administrative Services shall:

(a) Satisfy the debt service obligations for Westside Light Rail in the amount of $19,993,390 prior to making any other allocations in this 1999 Act;

(b) Subject to paragraph (a) of this subsection, satisfy the debt services obligations for the Oregon State Fair and Exposition Center in the amount of $1,176,677 prior to making any other allocations in this 1999 Act; and

(c) Subject to paragraphs (a) and (b) of this subsection, satisfy the debt service obligations for the Economic Development Department in the amount of $5,598,963 from the allocation made to the Economic Development Department by section 4 (2) of this 1999 Act prior to making any other allocations in this 1999 Act.

(3) After the debt service obligations described in subsection (2) of this section are satisfied, if the remaining moneys transferred from the State Lottery Fund to the Administrative Services Economic Development Fund are insufficient to pay for the quarterly allocations established under this 1999 Act, these allocations shall be reduced proportionately in sufficient amounts to accommodate the revenue shortfall.

SECTION 17. (1) Pursuant to sections 1 to 9, chapter 44, Oregon Laws 1999 (Enrolled Senate Bill 200), and subject to future legislative approval, lottery bonds may be issued to make grants or loans to Oregon cities to fund projects for the reconstruction, renovation or development of community sports facilities in order to make the facilities suitable for use by a major league baseball team if a city is selected as an expansion site by major league baseball or if a major league baseball team agrees to relocate to a city.

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

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

(b) Such financial assistance to cities 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 assistance to cities is an appropriate use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510.

(3) 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 by section 1, chapter 702, Oregon Laws 1999 (Enrolled House Bill 2153). The Director of the Economic Development Department shall allocate the moneys deposited in the Economic Infrastructure Project Fund for the purpose described in this section in accordance with the policies developed by the Oregon Economic Development Commission in accordance with ORS 285A.045.

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

SECTION 18. Notwithstanding any other law, all sections of this 1999 Act are subject to Oregon Department of Administrative Services rules relating to allotting, controlling, and encumbering funds.

SECTION 19. 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 30, 1999

Filed in the office of Secretary of State July 30, 1999

Effective date July 30, 1999

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