2007 ORS 285B.551¹
Issuance of additional lottery bonds
  • amount
  • use of bond proceeds
  • Economic Infrastructure Project Fund

(1) Pursuant to ORS 286A.560 (Definitions for ORS 286A.560 to 286A.585 and 327.700 to 327.711) to 286A.585 (Lottery bonds for community sports facilities), 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 (Special Public Works Fund), the Water Fund created by ORS 285B.563 (Water Fund), the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213 (Safe Drinking Water Revolving Loan Fund), the Oregon Port Revolving Fund created by ORS 285A.708 (Oregon Port Revolving Fund), the Brownfields Redevelopment Fund created by ORS 285A.188 (Brownfields Redevelopment Fund), the Oregon Business Development Fund created by ORS 285B.092 (Oregon Business Development Fund) and the Marine Navigation Improvement Fund created by ORS 777.267 (Marine Navigation Improvement Fund).

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

(c) To fund Oregon’s share of the costs of studies and ecosystem restoration projects in the lower Columbia River estuary designed to improve habitat for listed endangered or threatened species of Columbia River anadromous salmonids.

(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 establishment and expansion of businesses in Oregon and 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 (State Lottery Fund).

(d) The current lower Columbia River estuary habitat for listed endangered or threatened species of Columbia River anadromous salmonids could be improved through ecosystem restoration projects. The use of the Oregon State Lottery to pay debt service on lottery bonds issued under this section to pay for studying how the estuary could be improved and to pay for ecosystem restoration projects are authorized uses of state lottery funds.

(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 may not exceed the sum of $248.7 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 may 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 may be issued only at the request of the Director of the Economic and Community Development Department. The director may 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 subsection (1)(a) and (b) of 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 and Community Development Department for any purpose for which moneys in the Special Public Works Fund created by ORS 285B.455 (Special Public Works Fund) may be used, any purpose for which moneys in the Water Fund created by ORS 285B.563 (Water Fund) may be used, any purpose for which moneys in the Safe Drinking Water Revolving Loan Fund created by ORS 285A.213 (Safe Drinking Water Revolving Loan Fund) may be used, any purpose for which moneys in the Oregon Port Revolving Fund created by ORS 285A.708 (Oregon Port Revolving Fund) may be used, any purpose for which moneys in the Brownfields Redevelopment Fund created by ORS 285A.188 (Brownfields Redevelopment Fund) may be used, any purpose for which moneys in the Oregon Business Development Fund created by ORS 285B.092 (Oregon Business Development Fund) may be used and any purpose for which moneys in the Marine Navigation Improvement Fund created by ORS 777.267 (Marine Navigation Improvement Fund) may be used. The Director of the Economic and Community Development Department shall allocate the moneys deposited in the Economic Infrastructure Project Fund for the purposes described in this subsection in accordance with the priorities developed by the Oregon Economic and Community Development Commission in accordance with ORS 285A.020 (Legislative findings). However, the director shall transfer from the Economic Infrastructure Project Fund and deposit into the Channel Deepening Account of 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 aggregate principal amount of lottery bonds issued pursuant to subsection (1)(c) of this section for the costs of studies and ecosystem restoration projects in the lower Columbia River estuary may not exceed the sum of $750,000 and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. The net proceeds of lottery bonds issued pursuant to subsection (1)(c) of this section shall be deposited in the Oregon Community Development Fund created by ORS 285A.227 (Oregon Community Development Fund) and may be used only for the Oregon nonfederal share of United States Army Corps of Engineers Columbia River estuary projects authorized by Congress prior to August 9, 2001. The director may not request the issuance of lottery bonds pursuant to subsection (1)(c) of this section until Congress and Washington have authorized their respective shares of the costs of the studies and ecosystem restoration projects in the lower Columbia River estuary.

(6) The proceeds of lottery bonds issued pursuant to this section may be used only for the purposes set forth in this section and for bond-related costs. [1999 c.702 §1; 2001 c.96 §6; 2001 c.942 §1; 2003 c.741 §4; 2005 c.788 §1; 2007 c.746 §1; 2007 c.804 §78]

Note: 285B.551 (Issuance of additional lottery bonds) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 285B or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Note: Sections 1 to 4, chapter 756, Oregon Laws 2005, provide:

Sec. 1. (1) The Legislative Assembly finds that issuing lottery bonds to provide grants to the Coos County Airport District to assist in the funding of the construction of a new passenger terminal at the North Bend Airport is essential to promoting economic development in southern Oregon.

(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 new passenger terminal at the North Bend Airport because it will increase the capability of the airport to meet air travel needs for Coos County and provide for continued and expanded economic opportunities for tourism in southwestern Oregon.

(c) Increased capacity for air transport at the North Bend Airport will increase the opportunity to attract new industries to areas served by the airport and increase opportunities for employment in those areas.

(d) The construction of a new passenger terminal at the North Bend Airport will promote economic development in this state, and the use of net proceeds 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 a new passenger terminal at the North Bend Airport is an authorized use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510 (State Lottery Fund). [2005 c.756 §1]

Sec. 2. The aggregate principal amount of lottery bonds issued pursuant to section 4 of this 2005 Act to assist in the funding of the construction of a new passenger terminal at the North Bend Airport may not exceed the sum of $10 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to section 4 of this 2005 Act shall be issued only at the request of the Director of the Economic and Community Development Department. The director may not request the issuance of lottery bonds pursuant to section 4 of this 2005 Act until the executive director of the Coos County Airport District certifies in writing that all necessary permits for the proposed construction have been obtained by the airport district and has provided documentation to the Director of the Economic and Community Development Department that verifies that the district will have sufficient funding to complete the project. [2005 c.756 §2]

Sec. 3. (1) The North Bend Airport Improvement Fund is established in the State Treasury, separate and distinct from the General Fund. The net proceeds of lottery bonds issued pursuant to section 4 of this 2005 Act shall be deposited in the fund. All moneys in the North Bend Airport Improvement Fund are continuously appropriated to the Economic and Community Development Department for the purpose of providing grants to the Coos County Airport District to assist in the funding of the construction of a new passenger terminal at the North Bend Airport. Interest earned on moneys in the fund shall be credited to the fund.

(2) Subject to subsection (3) of this section, moneys in the fund shall be made available for distribution to the Coos County Airport District in the form of grants for the purpose specified in section 1 of this 2005 Act.

(3) The Director of the Economic and Community Development Department shall enter into a grant agreement with the Coos County Airport District that requires the department to disburse the aggregate amount of $10 million from the fund to the district when:

(a) Moneys are available; and

(b) The executive director of the Coos County Airport District has provided the documentation required under section 2 of this 2005 Act. [2005 c.756 §3]

Sec. 4. (1)(a) For the biennium beginning July 1, 2005, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 [renumbered 286A.560 (Definitions for ORS 286A.560 to 286A.585 and 327.700 to 327.711) to 286A.585 (Lottery bonds for community sports facilities)] in the amount of $6 million for payment of grants to the Coos County Airport District related to the construction of a passenger terminal facility at the North Bend Airport, plus an additional amount estimated by the State Treasurer for payment of bond-related costs of the Economic and Community Development Department and the State Treasurer.

(b) For the biennium beginning July 1, 2007, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 in the amount of $4 million for payment of grants to the Coos County Airport District related to the construction of a passenger terminal facility at the North Bend Airport, plus an additional amount estimated by the State Treasurer for payment of bond-related costs of the Economic and Community Development Department and the State Treasurer.

(2)(a) Net proceeds of lottery bonds issued under subsection (1)(a) of this section, in the amount of $6 million, shall be deposited in the North Bend Airport Improvement Fund established by section 3, chapter 756, Oregon Laws 2005, not later than December 15, 2005.

(b) Net proceeds of lottery bonds issued under subsection (1)(b) of this section, in the amount of $4 million, shall be deposited in the North Bend Airport Improvement Fund established by section 3, chapter 756, Oregon Laws 2005, not later than December 15, 2007. [2005 c.756 §4; 2007 c.783 §106a]

Note: Sections 6 to 10, chapter 746, Oregon Laws 2007, provide:

Sec. 6. As used in sections 6 to 10 of this 2007 Act, "City of Hillsboro Downtown Parking Facility" or "facility" means the acquisition, construction and procurement of all components of a public parking facility to be established in the City of Hillsboro. [2007 c.746 §6]

Sec. 7. (1) Notwithstanding ORS 286.505 to 286.545 [series repealed in 2007], for the biennium beginning July 1, 2007, at the request of the Director of the Economic and Community Development Department, the State Treasurer is authorized to issue lottery bonds pursuant to ORS 286.560 to 286.580 [renumbered 286A.560 (Definitions for ORS 286A.560 to 286A.585 and 327.700 to 327.711) to 286A.585 (Lottery bonds for community sports facilities)] in the amount of $7 million for payment of the expenses of the City of Hillsboro for the establishment of the City of Hillsboro Downtown Parking Facility, plus an additional amount to be estimated by the State Treasurer for payment of bond-related costs incurred by the Economic and Community Development Department, the Oregon Department of Administrative Services and the State Treasurer.

(2) The bond-related costs incurred by the Economic and Community Development Department, the Oregon Department of Administrative Services and the State Treasurer for the lottery bonds authorized by this section shall be paid from the gross proceeds of the lottery bonds, from allocations for the purposes of ORS 286.576 (1)(c) [renumbered 286A.576 (Allocation of lottery moneys for lottery bonds) (1)(c)] or from moneys in the City of Hillsboro Downtown Parking Facility Fund established under section 9 of this 2007 Act. [2007 c.746 §7]

Sec. 8. The Legislative Assembly finds that:

(1) The City of Hillsboro Downtown Parking Facility will accomplish the purpose of creating jobs and furthering economic development in Oregon because construction and operation of a parking facility in the downtown area of the City of Hillsboro will:

(a) Enhance access to transit options for employees in an area in which the population has doubled since 1990.

(b) Allow for increased investment in allied health training and education, areas in which the State of Oregon needs assessments performed by the Employment Department identified a projected shortage.

(c) Increase the likelihood of federal funding for the facility and add new moneys that directly benefit Oregon’s construction industry as a result of receiving authorization for the issuance of lottery bonds.

(2) The factors described in subsection (1) of this section will encourage and promote economic development within the State of Oregon, and issuance of lottery bonds to finance the City of Hillsboro Downtown Parking Facility is therefore an appropriate use of state lottery funds under section 4, Article XV of the Oregon Constitution, and ORS 461.510 (State Lottery Fund). [2007 c.746 §8]

Sec. 9. (1) The City of Hillsboro Downtown Parking Facility Fund is established separate and distinct from the General Fund. The moneys in the City of Hillsboro Downtown Parking Facility Fund and the interest earnings of the fund are continuously appropriated to the Economic and Community Development Department for the purpose described in subsection (2) of this section, for payment of the department’s expenses incurred for entering into, modifying and administering the grant agreement authorized by this section in an amount up to $36,000 and for payment of bond-related costs. The fund consists of moneys deposited in the fund under section 7 of this 2007 Act, and may include fees, moneys or other revenues available for payment of expenses of establishing the facility.

(2) Subject to subsection (3) of this section, moneys in the fund shall be available for immediate distribution to the City of Hillsboro to pay the expenses of the facility.

(3) The Director of the Economic and Community Development Department shall enter into a grant agreement with the City of Hillsboro that requires:

(a) The city to agree in the grant agreement authorized by this section:

(A) To indemnify the state government, as defined in ORS 174.111 ("State government" defined), to the fullest extent permitted by law for any liability the state government might incur in connection with a borrowing by the city for the facility.

(B) Not to request or accept moneys from the state General Fund for the facility.

(C) To refund the difference to the director for deposit in the City of Hillsboro Downtown Parking Facility Fund if, upon completion of the facility, the aggregate expenditure of state and local moneys is less than $8.6 million.

(b) The department to disburse, over the course of the development of the facility, an aggregate amount of $7 million to the City of Hillsboro from the City of Hillsboro Downtown Parking Facility Fund when:

(A) Moneys are available;

(B) The director determines that the city has entered into one or more contracts that have an aggregate value of at least $16 million for final design, construction or acquisition of components of the facility; and

(C) The director determines that the city has provided documentation that it will have sufficient financing to complete the facility.

(4) If, on or before June 30, 2008, the director has not distributed bond proceeds to the City of Hillsboro under the requirements of this section and the grant agreement, the director shall:

(a) Evaluate the likelihood that the bond proceeds will be distributed before June 30, 2009; and

(b) Report the findings of the evaluation to the Oregon Department of Administrative Services and the State Treasurer on or before September 1, 2008. [2007 c.746 §9]

Sec. 10. The State of Oregon is not liable to the lenders, vendors or contractors of the City of Hillsboro for any action or omission under sections 6 to 10 of this 2007 Act or the grant agreement authorized by section 9 of this 2007 Act. [2007 c.746 §10]

1 Legislative Counsel Committee, CHAPTER 285B—Economic Development II, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­285b.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.