70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
SA to SB 1128
LC 944/SB 1128-2
SENATE AMENDMENTS TO
SENATE BILL 1128
By COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT
April 21
On page 1 of the printed bill, line 4, delete '285A.312, ' and
delete '285A.418,'.
Delete lines 5 through 10 and insert '285A.483, 285A.489,
285B.059, 285B.092, 285B.230, 285B.233, 285B.239, 285B.242,
285B.263, 285B.266, 285B.286, 285B.320, 285B.323, 285B.326,
285B.329, 285B.332, 285B.335, 285B.338, 285B.344, 285B.347,
285B.362, 285B.368, 285B.371, 285B.374, 285B.377, 285B.383,
285B.389, 285B.410, 285B.419, 285B.422, 285B.563 and 541.700;
repealing ORS 285A.115, 285A.212, 285A.215, 285A.218, 285A.221,
285A.312, 285A.360, 285A.363, 285A.369, 285A.380, 285A.383,
285A.386, 285A.389, 285A.392, 285A.415, 285A.418, 285A.480,
285A.492, 285A.535, 285A.538, 285A.541, 285A.544, 285A.547,
285A.550, 285A.621, 285A.636, 285A.639, 285A.642, 285A.645,
285A.648, 285A.651, 285A.663, 285A.714, 285A.717, 285A.720,
285A.723, 285A.726, 285A.729, 285B.156, 285B.177, 285B.180,
285B.251, 285B.289, 285B.292, 285B.295 and 285B.298; and
declaring an emergency.'.
On page 3, line 9, after 'to' insert a colon and delete the
rest of the line and lines 10 and 11.
On page 4, line 16, delete 'family wage jobs and' and insert
'jobs that'.
In line 25, delete 'the state in those regions' and insert '
those communities'.
In line 39, delete the comma and insert 'and the policymaking
bodies of'.
In line 42, delete the comma and insert 'and' and after '
Department' insert a comma and delete the rest of the line.
In line 43, delete 'ments, where applicable,'.
On page 5, line 4, after 'project' insert 'or service'.
In line 33, delete 'within the department'.
In line 36, delete '(1)'.
In line 40, delete '(a)' and insert '(1)'.
In line 42, delete '(b)' and insert '(2)'.
In line 45, delete '(c)' and insert '(3)'.
On page 6, line 2, delete '(d)' and insert '(4)'.
In line 4, delete '(e)' and insert '(5)' and delete ' all' and
delete 'and'.
In line 5, delete 'community'.
In line 6, delete '(f)' and insert '(6)'.
Delete lines 25 through 27.
On page 7, delete lines 15 through 17.
In line 18, delete '(3)' and insert '(2)'.
In line 22, delete '(4)' and insert '(3)'.
In line 26, delete '(5)' and insert '(4)'.
On page 8, line 20, delete 'areas of the' and insert '
communities'.
In line 21, delete 'state'.
In line 43, delete 'Block Grant' and insert 'Title I'.
In line 45, after 'Economic' insert 'and Community'.
On page 10, line 15, delete 'Block Grant' and insert ' Title
I'.
In line 18, delete 'Block Grant' and insert 'Title I'.
In line 20, delete 'Block Grant' and insert 'Title I'.
In line 22, delete 'Block' and insert 'Title I'.
In line 23, delete 'Grant'.
In line 24, delete 'Block Grant' and insert 'Title I'.
Delete lines 26 through 30 and insert:
' (b) Repayment of loans made by cities and counties with
grants from the Oregon Community Development Block Grant Program,
including interest earnings.'.
In line 31, after 'Department' delete the rest of the line and
line 32.
In line 33, delete 'velopment Community Development Block Grant
Program for Small Cities,'.
Delete lines 36 through 38.
In line 39, delete '(7)' and insert '(6)'.
In line 44, delete 'Block Grant' and insert 'Title I'.
On page 11, line 4, delete 'Block Grant' and insert 'Title I'.
In line 8, delete 'manufacturing' and insert 'traded sector'.
In line 12, delete 'employment' and insert 'economic' and
delete 'family wage'.
After line 12, insert:
' (c) Oregon's women and minority-owned businesses are
underrepresented in the business community.'.
In line 13, delete '(c)' and insert '(d)'.
In line 16, delete '(d)' and insert '(e)'.
In line 18, delete '(e)' and insert '(f)'.
In line 24, delete '(f)' and insert '(g)'.
In line 27, delete '(g)' and insert '(h)'.
After line 30, insert:
' (a) To assist the development of small businesses, with
special emphasis on increasing the percentage of businesses owned
by women and members of minority groups.'.
In line 31, delete '(a)' and insert '(b)'.
In line 33, delete '(b)' and insert '(c)'.
In line 36, delete '(c)' and insert '(d)'.
In line 40, delete '(d)' and insert '(e)' and delete ' local
development'.
Delete lines 42 through 45 and delete page 12.
On page 13, delete lines 1 through 3.
In line 4, delete '18' and insert '17'.
In line 30, delete '19' and insert '18'.
In line 31, delete '(1)'.
In line 33, delete 'a private, nonprofit corporation' and
insert 'organizations'.
Delete lines 34 through 41.
In line 42, delete '20' and insert '19'.
On page 14, line 7, delete '21' and insert '20'.
In line 19, delete '22' and insert '21'.
On page 15, line 3, delete '23' and insert '22'.
In line 21, after 'economic' insert 'and community'.
In line 28, delete '24' and insert '23'.
In line 44, delete '25' and insert '24'.
On page 16, restore lines 10 and 11.
In line 12, delete '26' and insert '25'.
In line 25, delete 'well-paying' and after 'jobs' insert ' that
increase average incomes'.
In line 33, after 'of' insert 'communities' and delete the rest
of the line.
In line 34, delete 'areas'.
On page 17, line 27, delete '27' and insert '26'.
On page 21, line 3, delete '28' and insert '27'.
In line 27, delete '29' and insert '28'.
In line 38, delete '(e)' and insert '(f)'.
On page 22, line 2, delete '30' and insert '29'.
In line 45, delete '31' and insert '30'.
On page 23, line 34, delete '32' and insert '31'.
In line 42, after 'authorizes' delete the rest of the line.
In line 43, delete 'requirements of this section or
authorizes'.
On page 24, line 9, delete '(2)' and insert '(3)'.
After line 11, insert:
' { + SECTION 32. + } ORS 285B.059 is amended to read:
' 285B.059. (1) The Oregon Economic { + and Community + }
Development Commission may approve a business development project
proposed in an application filed under ORS 285B.050 to 285B.098
if, after investigation, it finds that:
' (a) The proposed business development project is feasible and
a reasonable risk from practical and economic standpoints, and
the loan has reasonable prospect of repayment.
' (b) The applicant can provide good and sufficient collateral
for the loan.
' (c) Moneys in the Oregon Business Development Fund are or
will be available for the proposed business development project.
' (d) There is a need for the proposed business development
project, and the applicant's financial resources are adequate to
assure success of the project.
' (e) If the proposed project is to be located in an
incorporated city, the governing body of that city has executed a
resolution recommending the proposed project.
' (f) If the proposed project is to be located outside any
incorporated city, the governing body of the county in which the
project is to be located has executed a resolution recommending
the proposed project.
' (g) The Housing and Community Services Department received
notification of the proposed project and any related workforce
increase at the time the application was received by the
commission.
' (h) The applicant has not received or entered into a contract
or contracts exceeding $500,000 with the commission, under
authority of ORS 285B.050 to 285B.098, for the previous 365 days,
nor is there an amount equal to 20 percent of the total value of
the fund in outstanding loans with the commission at any one time
for business development projects located in the same county as
the proposed project. However, nothing in this paragraph prevents
the commission from making a loan to an emerging small business,
as provided in subsection (6) of this section, or making a loan
of less than $100,000, as provided in ORS 285B.080.
' (2) Preference shall be given to a business development
project which has a high ratio of employment to the amount of
money sought to be borrowed from the Oregon Business Development
Fund, which benefits businesses with fewer than 50 employees or
which is located within a rural area of the state. Consideration
also shall be given to the extent of participation by local
development groups, and the availability and cost of money to the
applicant from, or through, commercial lending or financial
institutions, or other financial sources, inasmuch as the Oregon
Business Development Fund is intended to complement, not
supplant, other sources of money for economic development.
' (3) The total amount of moneys loaned from the fund for any
business development project shall not exceed 50 percent of the
cost of the project. Working capital equity contributed by the
applicant or a related party shall not be included in the
calculation of total project costs.
' (4) Except in cases where the applicant is a county or
municipality, no money shall be loaned from the fund for any
business development project unless there exists a commitment
from a commercial or private lender, or a local development
group, to participate in the financing of the project.
' (5) To encourage private sector and local development group
participation in the financing of business development projects,
the commission may subordinate the security position of the fund
to that of other lenders.
' (6) In each fiscal year of a biennium, not less than 15
percent of all moneys available for lending from the Oregon
Business Development Fund are reserved for loans to certified
emerging small business enterprises which are located in or draw
their workforces from within { - economically depressed
areas - } { + distressed communities + } as determined by the
Economic { + and Community + } Development Department in
cooperation with the Employment Department of this state. Any
amounts reserved for loans to such businesses that are not loaned
in one fiscal year shall be added to the amount reserved for
loans to such businesses in the subsequent fiscal year. If the
Economic { + and Community + } Development Department is unable
to obtain a sufficient number of approvable applications to meet
the requirements of this subsection, it may, notwithstanding the
limitations imposed by ORS 285B.050 (1)(g)(B), make loans to
service and retail businesses operated by certified emerging
small business enterprises.
' (7) In the operation of the Oregon Business Development Fund,
the commission and the department shall, to the maximum extent
feasible and consistent with constitutional limitations, seek to
assure that an amount equal to that specified in subsection (6)
of this section be loaned to businesses owned and operated by
women and minorities.
' { + SECTION 33. + } ORS 285B.092 is amended to read:
' 285B.092. (1) There is created within the State Treasury a
revolving fund known as the Oregon Business Development Fund,
separate and distinct from the General Fund. Interest earned by
the fund shall be credited to the fund. Moneys in this fund are
continuously appropriated to the Oregon Economic { + and
Community + } Development Commission for the following purposes:
' (a) Administrative expenses of the commission in processing
applications, investigating proposed business development
projects and servicing outstanding loans. In any one year,
administrative expenses charged under this paragraph may not be
greater than the total revenues received in that year from fees
provided for in subsection (2)(a) of this section, plus four
percent of the total asset value of the fund.
' (b) Payment of loans to applicants under ORS 285B.050 to
285B.098.
' (c) Transfers of moneys as provided in ORS 285B.374 (4)(a).
' (d) Purchase or buy out of superior or prior liens or
mortgages on or a security interest in any business development
project financed in part by a loan from the fund, when the
commission determines:
' (A) A loan from the fund is in default and is in liquidation
or at risk of being forced into liquidation by another creditor
to the project;
' (B) Such action is necessary to maintain or enhance the value
of the commission's collateral in the project; and
' (C) The amount of the purchase or buyout of superior or prior
liens or mortgages on that project does not exceed $500,000.
' (2) The fund created by subsection (1) of this section shall
consist of:
' (a) Fees required by ORS 285B.056 (2) and 285B.068 (2).
' (b) Repayment of moneys loaned to counties, municipalities or
persons from the Oregon Business Development Fund, including
interest on those moneys.
' (c) Payment of such moneys as may be appropriated to the fund
by the Legislative Assembly.
' (d) Moneys obtained from any interest accrued from funds.
' (e) Moneys from any grant made to the fund by any federal
agency.
' { + (3) Notwithstanding any other law, if at any time there
are insufficient funds in the Oregon Entrepreneurial Development
Loan Fund established by section 13, chapter 688, Oregon Laws
1991, the Director of the Economic and Community Development
Department may direct the transfer of unobligated funds from the
Oregon Business Development Fund to the Oregon Entrepreneurial
Development Loan Fund. Transfers under this subsection shall be
in amounts necessary to meet the reasonably foreseeable demand
for participation in the entrepreneurial loan program. + }
' { + SECTION 34. + } ORS 285B.320 is amended to read:
' 285B.320. The Legislative Assembly finds that by use of the
powers and procedures described in ORS 285B.320 to 285B.377 for
the assembling and financing of lands for industrial, commercial
and research and development uses and for the construction and
financing of facilities for such uses, financed through the
issuance of { - revenue - } bonds secured solely by the
properties { + , loan payments, + } { - and - } rentals { +
or other financing payments + } thus made available, the state
may be able to reduce substantially in various counties the
occurrence of economic conditions requiring more expensive
remedial action. It is the purpose of ORS 285B.320 to 285B.377 to
authorize the exercise of powers granted by ORS 285B.320 to
285B.377 by this state in addition to and not in lieu of any
other powers it may possess.
' { + SECTION 35. + } ORS 285B.323 is amended to read:
' 285B.323. As used in ORS 285B.320 to 285B.377, unless the
context requires otherwise:
' { + (1) 'Bond' means any evidence of indebtedness,
including but not limited to any bond, note, obligation, loan
agreement, financing agreement, contracts for leasing, rental or
financing of real or personal property, including contracts for
rental, long term leases under an optional contract for purchase,
financing agreements with vendors, financial institutions or
others or for purchase of any property secured by revenues or
from other financing sources as provided in ORS 285B.320 to
285B.377. A bond, as defined in this subsection and issued under
ORS 285B.320 to 285B.377, shall be considered a revenue bond for
purposes of ORS 286.031. + }
' { - (1) - } { + (2) + } 'Economic development project'
includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise. 'Economic
development project' shall not include any facility or facilities
designed primarily for the generation, transmission, sale or
distribution of electrical energy.
' { - (2) - } { + (3) + } 'Eligible project' means an
economic development project found by the Oregon Economic { +
and Community + } Development Commission to meet standards of the
commission adopted under ORS 285A.110. The commission may treat
as a single eligible project for bonding purposes any number of
economic development projects determined to be eligible projects.
' { + SECTION 36. + } ORS 285B.326 is amended to read:
' 285B.326. (1) Upon determining an economic development
project an 'eligible project,' the Oregon Economic { + and
Community + } Development Commission shall forward the
application to the State Treasurer, who shall determine whether
to issue the { - revenue - } bonds.
' (2) The commission shall collect the fees set forth in
subsection (3) of this section from an applicant that seeks to
have an economic development project declared eligible for
financing. The fee may be collected even though the project has
not been determined to be eligible for financing. Moneys
collected under this subsection are continuously appropriated to
the commission for the purpose of administration or funding of
any program it is authorized to operate. Participation fees
received on bonds issued pursuant to ORS 285B.377 may be paid to
local development groups for administration expenses related to
investigating proposed economic development projects and
assisting the commission in processing applications pursuant to
ORS 285B.377.
' (3) The fees described in subsection (2) of this section are
as follows:
' (a) $250 for an application of not to exceed $500,000.
' (b) $500 for an application of more than $500,000.
' (c) A closing fee of not to exceed one-half of one percent of
the total bond issue for the project, as determined by the
commission.
' (d) A one-time participation fee, not to exceed one-half of
one percent of the total bond issue or an annual participation
fee not to exceed one one-sixteenth of one percent of the
outstanding principal of the bond issue as determined by the
commission.
' (e) For bonds issued under ORS 285B.374 and 285B.377,
insurance assessments in amounts and payable at such times as are
required by rules adopted pursuant to ORS 285A.110.
' { + SECTION 37. + } ORS 285B.329 is amended to read:
' 285B.329. The state, acting through the State Treasurer,
shall not undertake to finance any economic development project
pursuant to ORS 285B.320 to 285B.377 before the Oregon Economic
{ + and Community + } Development Commission has reviewed the
project pursuant to standards adopted under ORS 285A.110.
' { + SECTION 38. + } ORS 285B.332 is amended to read:
' 285B.332. (1) The undertaking of any eligible project must be
requested by official action of the governing body of the county
taken at a regular or duly called special meeting thereof by the
affirmative vote of a majority of its members.
' (2) The governing body of any Oregon county is encouraged to
forward appropriate prospective eligible projects to the Oregon
Economic { + and Community + } Development Commission for
processing pursuant to ORS 285B.326.
' (3) For purposes of this section, for projects located on a
federally recognized Oregon Indian reservation, the governing
body of a county shall be considered to be the governing body of
the federally recognized Oregon Indian tribe.
' (4) If the governing body is requesting the undertaking of an
eligible project under ORS 285B.386, it may impose additional
reasonable requirements on the applicant.
' { + SECTION 39. + } ORS 285B.335 is amended to read:
' 285B.335. In addition to any other powers granted by law or
by charter, in relation to an eligible project, the state, acting
through the State Treasurer or a designee thereof may:
' (1) Enter into agreements to finance the costs of an eligible
project by loaning { + or otherwise making available + } the
proceeds of bonds authorized by ORS 285B.374 and 285B.377 to any
person, firm or public or private corporation or federal or state
governmental subdivision or agency under such terms and with such
security as the state may approve;
' (2) Lease and sublease eligible projects to any person, firm
or public or private corporation or federal or state governmental
subdivision or agency in such manner that rents to be charged for
the use of such projects shall be established, and revised from
time to time as necessary, so as to produce income and revenue
sufficient to provide for the prompt payment of principal of and
interest on all bonds issued under this section when due, and the
lease { + or financing agreement + } shall also provide that the
lessee { + , borrower or financing party + } shall be required to
pay all expenses of the operation and maintenance of the project
including, but without limitation, adequate insurance thereon and
insurance against all liability for injury to persons or property
arising from the operation thereof, and all taxes and special
assessments levied upon or with respect to the leased premises
and payable during the term of the lease, during which term ad
valorem taxes in the same amount and to the same extent as though
the lessee were the owner of all real and personal property
comprising the project;
' (3) Pledge and assign to the holders of such bonds or a
trustee therefor all or any part of the revenues of one or more
eligible projects owned or to be acquired by the state, and
define and segregate such revenues or provide for the payment
thereof to a trustee;
' (4) Mortgage or otherwise encumber eligible projects in favor
of the holders of such bonds or { + in favor of any escrow
agent, vendor, lender, other financing party or + } { - a - }
trustee therefor. However, in creating any such mortgages or
encumbrances the state can not obligate itself except with
respect to the project;
' (5) Make all contracts, execute { + and deliver + } all
instruments, and do all things necessary or convenient in the
exercise of the powers granted by this section, or in the
performance of its covenants or duties, or in order to secure the
payment of its bonds; including a contract entered into prior to
the construction, acquisition and installation of the eligible
project authorizing the lessee, { + borrower or other financing
party, + } subject to such terms and conditions as the state
shall find necessary or desirable and proper, to provide for the
construction, acquisition and installation of the buildings,
improvements and equipment to be included in the project by any
means available to the lessee { + , borrower or other financing
party, + } and in the manner determined by the lessee,
{ + borrower or other financing party, + } and without
advertisement for bids as may be required for the construction,
acquisition or installation of other public facilities;
' (6) Enter into and perform such contracts and agreements with
political subdivisions and state agencies as the respective
governing bodies of the same may consider proper and feasible for
or concerning the planning, construction, installation, lease, or
other acquisition, and the financing of such facilities, which
contracts and agreements may establish a board, commission or
such other body as may be deemed proper for the supervision and
general management of the facilities of the eligible project; and
' (7) Accept from any authorized agency of the { + state
or + } Federal Government loans or grants for the planning,
construction, acquisition, leasing, or other provision of any
eligible project, and enter into agreements with such agency
respecting such loans or grants.
' { + SECTION 40. + } ORS 285B.338 is amended to read:
' 285B.338. In carrying out its duties under ORS 285B.320 to
285B.377, the Oregon Economic { + and Community + } Development
Commission, acting for and in behalf of the state as its duly
authorized agency, may:
' (1) Acquire, construct and hold in whole or in part any
lands, buildings, easements, water and air rights, improvements
to lands and buildings and capital equipment to be located
permanently or used exclusively on such lands or in such
buildings, which are deemed necessary in connection with an
eligible project to be situated within the state, and construct,
reconstruct, improve, better and extend such projects, and enter
into contracts therefor; and
' (2) Sell and convey all properties acquired in connection
with eligible projects, including without limitation the sale and
conveyance thereof subject to any mortgage and the sale and
conveyance thereof under an option granted to the lessee of the
eligible project, for such price, and at such time as the state
may determine. However, no sale or conveyance of such properties
shall ever be made in such manner as to impair the rights of
interests of the holder, or holders, or any bonds issued under
the authority of ORS 285B.320 to 285B.377.
' { + SECTION 41. + } ORS 285B.344 is amended to read:
' 285B.344. (1) If the State Treasurer determines that
{ - revenue - } bonds should be issued:
' (a) The State Treasurer may authorize and issue in the name
of the State of Oregon { - revenue - } bonds secured by
revenues from eligible economic development projects { + or from
other financing sources + }, and where applicable, secured as
provided in ORS 285B.374 and 285B.377, to finance or refinance in
whole or part the cost of acquisition, construction,
reconstruction, improvement or extension of projects. The bonds
shall be identified by project and issued in the manner
prescribed by ORS 286.010, 286.020 and 286.105 to 286.135, and
refunding bonds may be issued to refinance such { - revenue - }
bonds.
' (b) The State Treasurer shall designate the underwriter,
trustee { + , + } { - and - } bond counsel, { + vendor,
lender or other financing party, + } if any, and enter into
appropriate agreements with each to carry out the provisions of
ORS 285B.320 to 285B.377.
' (2) Any { + escrow agent, bond registrar, paying agent
or + } trustee { + , if any, + } designated by the State
Treasurer to carry out all or part of the powers specified in ORS
285B.335 must agree to furnish financial statements and audit
reports for each bond issue.
' { + SECTION 42. + } ORS 285B.347 is amended to read:
' 285B.347. In determining whether to issue { - revenue - }
bonds under ORS 285B.320 to 285B.377, the State Treasurer shall
consider:
' (1) The { - bond - } market for the types of bonds
proposed for issuance.
' (2) The terms and conditions of the proposed issue.
' (3) Such other relevant factors as the State Treasurer
considers necessary to protect the financial integrity of the
state.
' { + SECTION 43. + } ORS 285B.362 is amended to read:
' 285B.362. The official action authorizing the issuance of
bonds under ORS 285B.320 to 285B.377 to finance or refinance in
whole or in part, the acquisition, construction, installation,
reconstruction, improvement, betterment or extension of any
eligible project may contain covenants, notwithstanding that such
covenants may limit the exercises of powers conferred by ORS
285B.320 to 285B.377 in the following respects and in such other
respects as the state, acting through the State Treasurer, or the
designee of the treasurer may decide:
' (1) The rents to be charged for the use of properties
acquired, constructed, installed, reconstructed, improved,
bettered or extended under the authority of ORS 285B.320 to
285B.377;
' (2) The use and disposition of the revenues of such projects;
' (3) The creation and maintenance of sinking funds and the
regulation, use and disposition thereof;
' (4) The creation and maintenance of funds to provide for
maintaining the eligible project and replacement of properties
depreciated, damaged, destroyed or condemned;
' (5) The purpose or purposes to which the proceeds of sale of
bonds may be applied and the use and disposition of such
proceeds;
' (6) The nature of mortgages or other encumbrances on the
eligible project made in favor of the holder or holders of such
bonds { + or in favor of any escrow agent, vendor, lender, other
financing party + } or { - a - } trustee therefor;
' (7) The events of default and the rights and liabilities
arising thereon and the terms and conditions upon which the
holders of any bonds may bring any suit or action on such bonds
or on any coupons appurtenant thereto;
' (8) The issuance of other or additional bonds or instruments
payable from or constituting a charge against the revenue of the
eligible project;
' (9) The insurance to be carried upon the eligible project and
the use and disposition of insurance moneys;
' (10) The keeping of books of account and the inspection and
audit thereof;
' (11) The terms and conditions upon which any or all of the
bonds shall become or may be declared due before maturity and the
terms and conditions upon which such declaration and its
consequences may be waived;
' (12) The rights, liabilities, powers and duties arising upon
the breach by the municipality or redevelopment agency of any
covenants, conditions or obligations;
' (13) The appointing of and vesting in a trustee or trustees
of the right to enforce any covenants made to secure or to pay
the bonds; the powers and duties of such trustee or trustees, and
the limitation of their liabilities;
' (14) The terms and conditions upon which the holder or
holders of the bonds, or the holders of any proportion or
percentage of them, may enforce any covenants made under ORS
285B.320 to 285B.377;
' (15) A procedure by which the terms of any official action
authorizing bonds or of any other contract with bondholders,
including but not limited to an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds
the holders of which may consent thereto, and the manner in which
such consent may be given; and
' (16) The subordination of the security of any bonds issued
under ORS 285B.320 to 285B.377 and the payment of principal and
interest thereof, to the extent deemed feasible and desirable by
the state, to other bonds or obligations of the state issued to
finance the eligible project or that may be outstanding when the
bonds thus subordinated are issued and delivered.
' { + SECTION 44. + } ORS 285B.368 is amended to read:
' 285B.368. Subject to any contractual limitation binding upon
the holders of any issue of { - revenue - } bonds, or { + any
escrow agent, vendor, lender, other financing party or + }
{ - a - } trustee therefor, including but not limited to the
restriction of the exercise of any remedy to a specified
proportion or percentage of such holders, any holder of bonds, or
any trustee therefor, for the equal benefit and protection of all
bondholders similarly situated, may:
' (1) By action or proceeding for legal or equitable remedies,
enforce their rights against the state and any of its officers,
agents and employees, and may require and compel the state or any
such officers, agents or employees to perform and carry out its
and their duties and obligations under ORS 285B.320 to 285B.377
and its and their covenants and agreements with bondholders;
' (2) By action require the state to account as if it was the
trustee of an express trust;
' (3) By action enjoin any acts or things which may be unlawful
or in violation of the right of the bondholders;
' (4) Bring action upon the bonds;
' (5) Foreclose any mortgage or lien given under the authority
of ORS 285B.320 to 285B.377 and cause the property standing as
security to be sold under any proceedings permitted by law or
equity; and
' (6) Exercise any right or remedy conferred by ORS 285B.320 to
285B.377 without exhausting and without regard to any other right
or remedy conferred by ORS 285B.320 to 285B.377 or any other law
of this state, none of which rights and remedies is intended to
be exclusive of any other, and each is cumulative and in addition
to every other right and remedy.
' { + SECTION 45. + } ORS 285B.371 is amended to read:
' 285B.371. The state, acting through the State Treasurer and
the Oregon Economic { + and Community + } Development
Commission, or either of them, may loan the proceeds of the bonds
authorized by ORS 285B.320 to 285B.377 for eligible projects
without the necessity of the state having any ownership or
leasehold interest in the eligible projects. Loans made pursuant
to this section shall be secured, if at all, to the extent deemed
necessary or desirable by the State Treasurer and the Oregon
Economic { + and Community + } Development Commission.
' { + SECTION 46. + } ORS 285B.374 is amended to read:
' 285B.374. (1) There is created within the State Treasury a
revolving trust fund known as the Oregon Economic { + and
Community + } Development Fund, separate and distinct from the
General Fund. Interest earned by the fund shall be credited to
the fund. Moneys in this fund shall be used in accordance with
agreements made by the state, acting through the State Treasurer
or the State Treasurer's designee, for the benefit of the holders
of bonds issued under ORS 285B.377, but only to pay:
' (a) Principal of, interest and redemption premium, if any, on
bonds issued under ORS 285B.377;
' (b) Insurance premiums for bonds issued under ORS 285B.377;
and
' (c) Repayment of any transfers authorized by subsection (4)
of this section.
' (2) The following moneys shall be credited to the Oregon
Economic { + and Community + } Development Fund:
' (a) Reserve funds established for bonds issued under ORS
285B.377.
' (b) Such moneys as may be appropriated to the fund by the
Legislative Assembly.
' (c) Payments made in respect of eligible projects under loan
agreements, { + financing agreements, notes, obligations,
indentures, + } leases or subleases { - which - } { +
that + } are dedicated to payments of bond principal, interest
and redemption premium, if any.
' (d) Earnings from investment of moneys in the fund.
' (e) Any grant made to the fund by any federal agency.
' (f) Any other moneys required to be placed in the fund
pursuant to any agreement authorized by ORS 271.510, 271.520,
285B.092, 285B.320 to 285B.326, 285B.335, 285B.341, 285B.344,
285B.350, 285B.365, 285B.371 to 285B.377 and 777.250.
' (3) There is created a trust account within the Oregon
Economic { + and Community + } Development Fund to be known as
the Economic Development Insurance Account. Fees authorized under
ORS 285B.326 (3)(e) and other moneys required to be placed in the
account pursuant to any agreement authorized by ORS 271.510,
271.520, 285B.092, 285B.320 to 285B.326, 285B.335, 285B.341,
285B.344, 285B.350, 285B.365, 285B.371 to 285B.377 and 777.250
and such other assets as may be required pursuant to ORS 285B.377
(4) and earnings in the account shall be credited to the Economic
Development Insurance Account. Fees authorized under ORS 285B.326
(3)(d) shall be credited to the Economic Development Insurance
Account, unless otherwise required as repayment for transfers
provided for in subsection (4)(b) of this section. Moneys in the
Economic Development Insurance Account shall be used only to
replenish reserves established in the Oregon Economic { + and
Community + } Development Fund or to pay principal and interest
due on bonds authorized under ORS 285B.377 and to pay insurance
premiums for such bonds, in accordance with rules adopted by the
state, acting through the State Treasurer or the State
Treasurer's designee.
' (4) If, at any time, there are insufficient moneys in the
Oregon Economic { + and Community + } Development Fund available
for timely payment of the bonds authorized by ORS 285B.377, then
the conditions precedent to a transfer of moneys under ORS
293.210 from the Oregon Business Development Fund to the Oregon
Economic { + and Community + } Development Fund shall be deemed
to be met for:
' (a) A transfer of any liquid assets in the Oregon Business
Development Fund which are not then required to meet obligations
against that fund; and
' (b) A maximum transfer of $3 million from any other state
funds having excess money, but only under terms for repayment
which are approved by the State Treasurer.
' { + SECTION 47. + } ORS 285B.377 is amended to read:
' 285B.377. (1) In addition to bonds authorized by ORS 285B.320
to 285B.377, the state may issue bonds to finance eligible
projects which are secured in part by the assets of the Oregon
Economic { + and Community + } Development Fund, as provided in
this section.
' (2) The aggregate principal amount of { - revenue - }
bonds issued pursuant to this section which are outstanding at
any time shall not exceed $20 million.
' (3) Bonds issued pursuant to this section shall be secured in
the manner provided in rules adopted by the Oregon Economic { +
and Community + } Development Commission and approved by the
State Treasurer.
' (4) The commission may require participants to agree to such
arrangements as it and the State Treasurer deem necessary to
secure the payment of the principal of, and interest on, the
bonds, and redemption premium, if any. Such arrangements may
include, but are not limited to, establishment of a debt service
reserve, creation of a self-insurance program, the purchase of
insurance or other similar devises ensuring the payment of the
principal of, and interest on, the bonds issued pursuant to this
section.
' (5) Within 30 days following the closing of each fiscal
quarter, the commission shall report on its operations to the
Governor, State Treasurer and the Legislative Assembly. The
report shall include a summary of the activities of the
commission relating to bonds issued under this section.
' (6) Notwithstanding the provisions of ORS 285B.365, the state
may pledge to the payment of bonds authorized by this section any
funds or revenues specifically set forth in this section, as well
as any other funds or revenues which may be used for such
purposes under any other provision of state law.
' (7) Except to the extent they are inconsistent with the
provisions of this section or the rules adopted under ORS
271.510, 271.520, 285B.092, 285B.320 to 285B.326, 285B.335,
285B.341, 285B.344, 285B.350, 285B.365, 285B.371 to 285B.377 and
777.250, the provisions of ORS 285B.320 to 285B.377 apply to the
bonds issued under ORS 271.510, 271.520, 285B.092, 285B.320 to
285B.326, 285B.335, 285B.341, 285B.344, 285B.350, 285B.365,
285B.371 to 285B.377 and 777.250 and the loans made pursuant to
this section.
' { + SECTION 48. + } ORS 285B.410 is amended to read:
' 285B.410. As used in ORS 285B.410 to 285B.479, unless the
context requires otherwise:
' (1) 'Municipality' means a city, a county, a port
incorporated under ORS 777.010 and 777.050, the Port of Portland
created by ORS 778.010, a metropolitan service district organized
under ORS chapter 268, a domestic water supply district organized
under ORS chapter 264, a water authority or sanitary authority
organized under ORS 450.600 to 450.989, a water improvement
district organized under ORS chapter 552, a water control
district organized under ORS chapter 553, a sanitary district
organized under ORS 450.005 to 450.245, a county service district
organized under ORS chapter 451 or a tribal council of an Indian
tribe in this state.
' (2) 'Infrastructure project' means:
' (a) A project for the construction of sewage treatment works,
solid waste disposal sites, water supply works, roads, public
transportation, railroad industrial spurs or sidings or other
facilities that comprise the physical foundation for industrial
and commercial activity. The costs of property acquisition
directly related to the infrastructure project and acquisition of
easements or rights of way necessary to accomplish construction
of the infrastructure project are eligible for assistance under
ORS 285B.410 to 285B.479. The costs of activities related to
performing an environmental evaluation of a brownfield are
eligible for assistance under ORS 285B.416 (2) and 285B.455 (5).
Purchases of off-site property for project-related purposes such
as wetland mitigation or other uses not directly related to the
infrastructure are not eligible for assistance. As used in this
paragraph, 'brownfield' and 'environmental evaluation' have the
meanings given those terms respectively in ORS 285A.185 and
285A.188.
' (b) A project, in consultation with the Department of
Transportation and other affected agencies, for the acquisition,
reconstruction or rehabilitation of an abandoned railroad line or
railroad line that has been designated by the owner and operator
thereof as subject to abandonment within a three-year period
pursuant to federal law and regulations governing abandonment of
common carrier railroad lines. The project may include operation
or maintenance costs if the project also includes acquisition,
reconstruction or rehabilitation.
' (c) A safe drinking water project, in consultation with the
Water Resources Department, the Health Division of the Department
of Human Resources or the Department of Land Conservation and
Development, for improving a drinking water system for the
purpose of achieving or maintaining compliance with applicable
state or federal drinking water quality regulations.
' (d) A project for the acquisition, construction or
development of community facilities, including the acquisition of
land, the construction, acquisition, renovation or reconstruction
of buildings, structures and other real property and the
acquisition or construction of related equipment and fixtures.
{ - As used in this paragraph, - } 'Community facilities'
includes facilities that { - provide educational, commercial,
recreational, cultural, social or similar services to the public,
and that - } are owned by a municipality and are operated by
either the municipality or a person under a management contract
or operating agreement with the municipality.
' (3) 'Public transportation' includes public depots, public
parking, public docks, public wharves, railroads and airport
facilities.
' (4) 'Roads' includes:
' (a) Ways described as streets, highways, throughways or
alleys;
' (b) Road related structures that are in the right of way such
as tunnels, culverts or similar structures; and
' (c) Structures that provide for continuity of the right of
way such as bridges.
' (5) 'Sewage treatment works' includes all facilities
necessary for collecting, pumping, treating and disposing of
sanitary or storm sewage.
' (6) 'Solid waste disposal site' has the meaning given to the
term 'disposal site' by ORS 459.005.
' (7) 'Water supply works' includes all facilities necessary
for tapping natural sources of domestic and industrial water,
treating and protecting the quality of the water and transmitting
it to the point of sale to any public or private agency for
domestic, municipal and industrial water supply service.
' (8) 'Urban infrastructure projects' includes all those
projects located in whole or in part within the acknowledged
Portland Metropolitan Area Regional Urban Growth Boundary, and
the acknowledged urban growth boundaries of the cities of Eugene,
Springfield, Salem, Keizer or Medford or projects that will
principally benefit these areas. The Director of the
Economic { + and Community + } Development Department is
authorized to resolve situations left in question by this
definition.
' (9) 'Nonurban infrastructure projects' includes all those
projects which do not meet the definition of urban infrastructure
projects.
' { + SECTION 49. + } ORS 285B.422 is amended to read:
' 285B.422. (1) The Economic { + and Community + } Development
Department may provide financial assistance to municipalities for
infrastructure projects that are community facilities projects as
described in ORS 285B.410 (2)(d).
' (2) Before providing financial assistance for a community
facilities project, the Economic { + and Community + }
Development Department must find that:
' (a) The municipality has demonstrated that the community
facilities project will provide long term benefits to the
municipality;
' (b) The community facilities project will benefit a broad
cross-section of the municipality;
' (c) There is a substantial local commitment to the community
facilities to be financed; and
' (d) There is a need for the proposed community facilities
project, and the municipality's financial resources are adequate
to provide the working capital needed to ensure success of the
project.
' (3) Notwithstanding any other provision of ORS 285B.410 to
285B.479, community facilities projects shall be eligible only
for loans made with moneys derived from the sale of revenue bonds
issued under ORS 285B.467 { + or for loans made from the Special
Public Works Fund + }. { + No grants shall be made from the
Special Public Works Fund for the costs of a community facilities
project. Loans or grants from the Special Public Works Fund and
loans from the proceeds of revenue bonds issued under ORS
285B.467 may be used to pay issuance costs and for the funding of
any debt service reserve for any revenue bonds issued under ORS
285B.467 to finance community facilities. + }
' (4) ORS 285B.413 { + (1) and (2) + }, { - 285B.416, - }
285B.419 (1), 285B.434 (2), (4) { - , - } { + and + } (5)
{ - and (8), 285B.440, 285B.452, 285B.455 (5) - } , 285B.464 and
285B.467 (2) and (8) do not apply to a municipality applying for
financial assistance for a community facilities project.
' { + SECTION 50. + } ORS 285B.563 is amended to read:
' 285B.563. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Water Fund. All
moneys in the fund are continuously appropriated to the Economic
{ + and Community + } Development Department to provide
financing for water projects.
' (2)(a) Moneys in the Water Fund may be obligated to water
projects.
' (b) Moneys shall be used primarily to make loans to
municipalities. The department may make a loan only if:
' (A) The municipality applying for the loan certifies to the
department that adequate funds will be available to repay the
loan; and
' (B) The department determines that the amount of the loan
applied for is based on a reasonable and prudent expectation of
the municipality's ability to repay the loan.
' (c) The department may award a grant only if a loan is not
feasible due to:
' (A) Financial hardship to the municipality, as determined by
the department, based on consideration of anticipated water
service charges or anticipated waste water service charges that
exceed the statewide average for such charges, the per capita
income of the municipality and such other factors as the
department by rule may establish; and
' (B) Special circumstances of the water project.
' (d) The department may determine the amount of grant or loan
funding on a case-by-case basis.
' { - (e) The amount of grants made under ORS 285B.560 to
285B.599 shall not exceed 50 percent of the moneys allocated to
the fund from proceeds of the Oregon State Lottery. - }
' (3) The moneys in the fund may also be used to assist the
department in selling revenue bonds on behalf of municipalities
in order to carry out the purposes of ORS 285B.560 to 285B.599.
' (4) With the approval of the State Treasurer, moneys in the
Water Fund may be invested as provided by ORS 293.701 to 293.820.
The earnings from such investments and other program income shall
be credited to the Water Fund.
' (5) The Water Fund shall consist of:
' (a) Moneys appropriated to the fund by the Legislative
Assembly.
' (b) Moneys transferred to the fund by the Economic { + and
Community + } Development Department from the Special Public
Works Fund created by ORS 285B.455.
' (c) Moneys transferred to the fund by the Water Resources
Commission from the Water Development Fund created by Article
XI-I(1) of the Oregon Constitution.
' (d) Moneys from any federal, state or other grants.
' (e) Proceeds of revenue bonds issued under ORS 285B.575.
' (f) Earnings on the fund.
' (6) The department shall administer the fund.
' (7) The department shall adopt rules and policies for the
administration of the fund. The department shall coordinate its
rulemaking regarding safe drinking water projects with the Water
Resources Department and the Health Division of the Department of
Human Resources. The rules adopted under this subsection for safe
drinking water projects shall:
' (a) Require the installation of meters on all new service
connections to any distribution lines funded with moneys from the
fund or from the proceeds of revenue bonds issued under ORS
285B.572 to 285B.578.
' (b) Require a plan, to be adopted by a municipality receiving
financial assistance from the fund, for installation of meters on
all service connections throughout the drinking water system not
later than two years after the completion of a safe drinking
water project.
' { + (8)(a) The Economic and Community Development
Department shall manage the Water Fund and any expenditures from
accounts in the fund and transfers between accounts so that the
fund value shall be equal to at least 50 percent of lottery
revenues actually transferred to the fund plus interest on such
amounts compounded annually at five percent. The fund value shall
be determined by adding the cash reserves and the outstanding
principal amount of loans to municipalities. Any amount of loan
principal that is forgiven shall be subtracted from the value of
the fund. The value of the fund shall include moneys in the fund
that are pledged to the repayment of state bonds.
' (b) The department shall certify to the State Treasurer in
each quarter the value of the fund.
' (c) If necessary to ensure repayment of bonds issued under
ORS 285B.560 to 285B.599, the department may reduce the value of
the fund to less than the limit established in paragraph (a) of
this subsection when the department:
' (A) Finds that without such a reduction in fund value, bonds
secured by the fund are likely to be in default; and
' (B) Imposes a moratorium on grants until the requirements of
paragraph (a) of this subsection are satisfied. + }
' { - (8) - } { + (9) + }(a) The department may charge
administrative costs to the fund, but not to moneys segregated in
the account created by subsection { - (10) - } { + (11) + }
of this section, to pay for administrative expenses incurred by
the department for processing applications, investigating water
projects, monitoring recipients of financing for water projects
and servicing and collecting outstanding financial awards made
for water projects.
' (b) To the extent permitted by federal law, administrative
expenses of the department as limited in paragraph (a) of this
subsection that are paid from the fund shall not exceed four
percent of the moneys allocated to the fund in any biennium.
Administrative expenses of the department as limited in paragraph
(a) of this subsection may be paid from bond proceeds.
' { - (9) - } { + (10) + } The department may establish
other accounts within the Water Fund for the payment of water
projects costs, reserves, debt service payments, credit
enhancements, costs of issuing revenue bonds, administrative and
operating expenses or any other purpose necessary to carry out
ORS 285B.560 to 285B.599.
' { - (10) - } { + (11) + } There is created within the
Water Fund a separate and distinct account for the proceeds from
the sale of water development general obligation bonds issued for
safe drinking water projects and credited to the special account
under this section. Any investment earnings thereon shall be
segregated in and continuously appropriated to a special,
separately accounted for subaccount of this account. Moneys
credited to this account shall be maintained separate and
distinct from moneys credited to subaccounts created under
subsection { - (9) - } { + (10) + } of this section.
Notwithstanding ORS 285B.566 or subsection (4) of this section,
all repayments of moneys loaned from the account created by this
subsection, including interest on such moneys, shall be credited
to the Water Development Administration and Bond Sinking Fund
created by ORS 541.830.
' { + SECTION 51. + } ORS 541.700 is amended to read:
' 541.700. As used in ORS 541.700 to 541.855, unless the
context requires otherwise:
' (1) 'Commission' means the Water Resources Commission
appointed under ORS 536.022.
' (2) 'Construction' means the construction, or improvement or
rehabilitation, in whole or in part, of a water development
project, including planning and engineering work directly related
to such construction or improvement or rehabilitation, or any
combination of such construction or improvement or
rehabilitation.
' (3) 'Director' means the Water Resources Director appointed
pursuant to ORS 536.032.
' (4) 'Federal water development project' means a project that
meets the requirements of the Watershed Protection and Flood
Prevention Act (68 Stat. 666), as amended, or the Small
Reclamation Projects Act of 1956 (70 Stat. 1044), as amended.
' (5)(a) 'Secondary use' means:
' (A) Any water-related recreational use.
' (B) Any wildlife or natural resource conservation use.
' (C) Municipal and industrial water uses with a water
development project as the source.
' (D) Water quality enhancement directly related to the
development of a new water development project.
' (E) Any flood control use.
' (F) Any power generation use.
' (G) Any water supply system utilized for the purpose of
agricultural temperature control.
' (H) Any water supply system utilized for the maintenance of
livestock.
' (I) Any water supply system utilized as a domestic water
system for the benefit of an individual residence related to the
operation of the water development project.
' (b) 'Secondary use' does not include any use that is
incompatible with a water development project.
' (6) 'Water development project' means:
' (a) An undertaking, in whole or in part, in this state for
the purpose of irrigation, including dams, storage reservoirs,
wells or well systems, pumping plants, pipelines, canals,
ditches, revetments and any other structure, facility and
property necessary or convenient for supplying lands with water
for irrigation purposes.
' (b) An undertaking, in whole or in part, in this state for
the purpose of drainage, including ditching, tiling, piping,
channel improvement, pumping plants or other agronomically
approved methods of land drainage that will increase soil
versatility and productivity.
' (c) An undertaking, in whole or in part, in this state for
the purpose of providing water for municipal use, which may
include safe drinking water for communities with population less
than 30,000, including dams, storage reservoirs, wells or well
systems, pumping plants, treatment facilities, pipelines, canals,
ditches, revetments and all other structures and facilities
necessary or convenient for supplying water. An undertaking may
provide water to two or more communities with a combined
population of more than 30,000. An undertaking may be part of a
project that provides water to a community with a population of
more than 30,000, but loans of moneys from the Water Development
Fund, including moneys in ORS 285B.563 { - (10) - }
{ + (11) + } may be made only to communities served by the
project that have a population of less than 30,000.
' (d) An undertaking, in whole or in part, in this state for
the purpose of fish protection, including fish screening or
by-pass devices, fishways and all other structures and facilities
necessary or convenient for providing fish protection.
' (e) An undertaking, in whole or in part, in this state for
the purpose of watershed enhancement including methods and
materials to restore, maintain and enhance the biological,
chemical and physical integrity of the riparian zones and
associated uplands of the state's rivers, lakes and estuaries
systems and recommended by the Governor's Watershed Enhancement
Board established under ORS 541.360.
' (f) Secondary uses in conjunction with projects described in
paragraphs (a) to (e) of this subsection.
' (7) 'Water developer' means:
' (a) Any individual resident of this state;
' (b) Any partnership for profit subject to the provisions of
ORS chapter 67, 68 or 70, whose principal income is from farming
in Oregon;
' (c) Any corporation for profit subject to the provisions of
ORS chapter 60, whose principal income is from farming in Oregon;
' (d) Any nonprofit corporation subject to the provisions of
ORS chapter 65, whose principal income is from farming in Oregon;
' (e) Any cooperative subject to the provisions of ORS chapter
62, whose principal income is from farming in Oregon;
' (f) Any irrigation district organized under or subject to ORS
chapter 545;
' (g) Any water improvement district organized under ORS
chapter 552;
' (h) Any water control district organized under ORS chapter
553;
' (i) Any irrigation or drainage corporation organized under or
subject to ORS chapter 554;
' (j) Any drainage district organized under ORS chapter 547 or
subject to all or part of ORS chapter 545;
' (k) Any corporation, cooperative, company or other
association formed prior to 1917 for the purpose of distributing
water for irrigation purposes;
' (L) Any port district organized under ORS 777.005 to 777.725,
777.915 to 777.953 and 777.990;
' (m) Any city or county;
' (n) Any organization formed for the purpose of distributing
water for community water supply; or
' (o) Any local soil and water conservation district organized
under ORS 568.210 to 568.808 and 568.900 to 568.933.'.
In line 12, delete '33' and insert '52'.
In line 28, delete '34' and insert '53' and after 'ORS ' delete
the rest of the line and line 29 and insert '285A.115, 285A.212,
285A.215, 285A.218, 285A.221, 285A.312, 285A.360, 285A.363,
285A.369, 285A.380, 285A.383, 285A.386, 285A.389, 285A.392,
285A.415, 285A.418, 285A.480, 285A.492, 285A.535, 285A.538,
285A.541, 285A.544, 285A.547,'.
After line 32, insert:
' { + SECTION 54. + } { + 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 on July 1, 1999. + } ' .
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