2017 ORS 353.370¹
Notice to Legislative Assembly required if shortfall in moneys exists for payment of amounts under bonds, certificates of participation or agreements for borrowing money

In addition to, and not in limitation of, the means of satisfying state general obligation bond obligations under ORS 291.445 (Certificate of state agency that issues general obligation bonds), Oregon Health and Science University, promptly upon the discovery of any shortfall in moneys available to the university for the payment when due of amounts under any bonds, certificates of participation, financing agreements or other agreements for the borrowing of moneys issued prior to July 1, 1995, by the State of Oregon on behalf of the State Board of Higher Education for equipment or projects for the university, shall notify in writing the Legislative Assembly, or if the Legislative Assembly is not in session, the Emergency Board, of the existence and amount of the shortfall. The Legislative Assembly or the Emergency Board, as the case may be, may provide funds to satisfy the payment of any such amount. By enacting this provision, the Legislative Assembly acknowledges its current intention to provide, from funds other than those appropriated or otherwise made available to public universities listed in ORS 352.002 (Public universities), funds to pay such amount. However, except as may be required by the Oregon Constitution or ORS 291.445 (Certificate of state agency that issues general obligation bonds), neither the Legislative Assembly nor the Emergency Board shall have any legal obligation to provide funds under this section. [1995 c.162 §61a; 1999 c.291 §13; 2015 c.767 §24]

Note: Sections 12, 18 to 28 and 30 (1), chapter 121, Oregon Laws 2014, provide:

Sec. 12. Use of lottery bonds for funding OHSU Cancer Institute Project. (1) Subject to subsection (2) of this section, for the biennium beginning July 1, 2013, at the request of the Oregon Department of Administrative Services, after the department consults with Oregon Health and Science University, the State Treasurer is authorized to issue lottery bonds 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) in an amount that does not exceed $38 million in net proceeds for the purpose described in subsection (3) of this section, plus an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs.

(2) The lottery bonds authorized by this section may not be issued until the Oregon Department of Administrative Services certifies to the State Treasurer that Oregon Health and Science University has complied with the terms and conditions imposed by the grant agreement required by section 22 of this 2014 Act for issuance of the OHSU Cancer Challenge Article XI-G Bonds.

(3) Net proceeds of lottery bonds issued under this section in an amount sufficient to provide $38 million in net proceeds and interest earnings must be transferred to the department for deposit in the ODAS Economic Development Distributions Fund established in ORS 461.553 (ODAS Economic Development Distributions Fund) for distribution to Oregon Health and Science University for the purpose of financing the project, as defined in section 20 of this 2014 Act.

(4) The Legislative Assembly finds that the use of lottery bond proceeds will create jobs, further economic development, finance public education or restore and protect parks, beaches, watersheds and native fish and wildlife, and is authorized based on the finding that the project will create jobs and facilitate and encourage long-term economic development by promoting the health of Oregon’s labor force. [2014 c.121 §12]

Sec. 18. Sections 19 to 23 of this 2014 Act are added to and made a part of ORS chapter 286A. [2014 c.121 §18]

Sec. 19. Legislative findings and intent. (1) The Legislative Assembly finds that:

(a) Oregon Health and Science University is a higher education institution and a constructing authority within the meaning of Article XI-G of the Oregon Constitution.

(b) The State of Oregon will benefit from having the State Treasurer issue general obligation bonds authorized by Article XI-G of the Oregon Constitution for the benefit of the university.

(c) The university may use proceeds of general obligation bonds issued for the university’s benefit under Article XI-G of the Oregon Constitution, to acquire, construct, improve, repair, equip and furnish the OHSU Cancer Institute Project.

(d) As part of the university’s efforts to provide world-class education, including research, health care and other mission-related programs of the university, the university needs buildings, structures and land that:

(A) Will be used for cancer-related research, clinical care and higher education facilities or operations; and

(B) May be used for research, health care or education facilities, programs or ancillary uses constructed, developed or operated in collaboration with other public or private parties.

(2) For purposes of Article XI-G, section 1 (2), of the Oregon Constitution, the Legislative Assembly determines that the university is a higher education institution that will be benefited by the issuance of general obligation bonds under Article XI-G of the Oregon Constitution.

(3) For purposes of Article XI-G, section 1 (3), of the Oregon Constitution, the Legislative Assembly determines that the use of matching funds by the university satisfies the requirement that the proceeds of Article XI-G bonds must be matched.

(4) The Legislative Assembly intends that the State Treasurer shall issue and sell the OHSU Cancer Challenge Article XI-G Bonds as soon as practicable after the Oregon Department of Administrative Services requests issuance of the bonds for the benefit of the university. [2014 c.121 §19]

Sec. 20. Definitions. As used in sections 19 to 23, chapter 121, Oregon Laws 2014:

(1) “Article XI-G bonds” means general obligation bonds issued under the authority of Article XI-G of the Oregon Constitution.

(2) “Bond-related costs” means:

(a) The costs of paying the principal of, the interest on and the premium, if any, on the OHSU Cancer Challenge Article XI-G Bonds.

(b) The costs and expenses of issuing, administering and maintaining OHSU Cancer Challenge Article XI-G Bonds, including the costs and expenses of:

(A) Redeeming the OHSU Cancer Challenge Article XI-G Bonds.

(B) Paying amounts due in connection with credit enhancement devices or agreements for exchange of interest rates.

(C) Paying the fees, administrative costs and expenses of the State Treasurer, the Oregon Department of Administrative Services or Oregon Health and Science University, including the costs of consultants or advisers retained by the State Treasurer, the department or the university.

(c) The costs of funding reserves for the OHSU Cancer Challenge Article XI-G Bonds.

(d) Capitalized interest for the OHSU Cancer Challenge Article XI-G Bonds.

(e) Rebates or penalties due to the United States in connection with the OHSU Cancer Challenge Article XI-G Bonds.

(f) Any other costs or expenses that the State Treasurer, the department or the university determines are necessary or desirable in connection with issuing and maintaining the OHSU Cancer Challenge Article XI-G Bonds.

(3) “Matching funds” means moneys in an aggregate amount totaling at least the amount of bond proceeds that are available, as required by Article XI-G, section 1 (3), of the Oregon Constitution, to the university and that are used by the university to pay costs of the project.

(4) “OHSU Cancer Challenge Article XI-G Bonds” means general obligation bonds issued or other general obligation indebtedness incurred under the authority of Article XI-G of the Oregon Constitution and sections 19 to 23, chapter 121, Oregon Laws 2014.

(5) “OHSU Cancer Institute Project” or “project” means the acquisition, construction, improvement, repair, equipping and furnishing of buildings, structures or lands that:

(a) May be constructed or developed in collaboration with other entities;

(b) Are owned, leased or occupied, in whole or in part, by the university; and

(c) Contain facilities used directly for or in furtherance of:

(A) The purposes of health care, cancer-related research, cancer-related clinical care or cancer-related higher education, including clinical laboratory, clinical trial, wet laboratory, research administration or other research-related purposes; and

(B) Any other higher education, administration, research, non-research or ancillary purposes. [2014 c.121 §20; 2015 c.685 §7]

Sec. 21. Issuance of Article XI-G bonds. (1) In the biennium beginning July 1, 2015, the State Treasurer, at the request of the Oregon Department of Administrative Services, may issue Article XI-G bonds, as provided in this chapter, for the purpose of financing the project, plus an amount determined by the State Treasurer to pay estimated bond-related costs.

(2) OHSU Cancer Challenge Article XI-G Bonds are a general obligation of the State of Oregon and must contain a direct promise on behalf of the State of Oregon to pay the principal of, the interest on and the premium, if any, on the OHSU Cancer Challenge Article XI-G Bonds. The State of Oregon shall pledge its full faith and credit and taxing power, including the ad valorem taxing power, to pay the principal of, the interest on and the premium, if any, on the bonds.

(3) The proceeds of bonds issued under this section are appropriated to the State Treasurer for the payment of bond-related costs and for transfer to the department.

(4) The State Treasurer shall transfer net proceeds and interest earnings to the department to be granted to Oregon Health and Science University upon satisfaction of terms and conditions in the grant agreement required by section 22, chapter 121, Oregon Laws 2014. [2014 c.121 §21; 2015 c.685 §8]

Sec. 22. Grant agreement between Oregon Department of Administrative Services and Oregon Health and Science University. (1) Before the State Treasurer may issue the OHSU Cancer Challenge Article XI-G Bonds:

(a) The Oregon Department of Administrative Services and Oregon Health and Science University must enter into a grant agreement in which the parties:

(A) Establish terms and conditions related to the grant, disbursement and use of net proceeds of the OHSU Cancer Challenge Article XI-G Bonds and interest earnings; and

(B) Provide for granting of net proceeds to the university upon satisfaction of the terms and conditions imposed in the grant agreement.

(b) The department must certify to the State Treasurer that the grant agreement has been entered into between the department and the university and that the university has certified to the department that the university has:

(A) Satisfied all material conditions precedent to its receipt of the matching funds; and

(B) Satisfied all material conditions precedent to its receipt of at least $800 million in gifts and legally irrevocable pledges.

(2) The terms and conditions of the grant agreement may:

(a) Impose restrictions on the use of the grant.

(b) Require that the bond proceeds be granted directly to a trustee or escrow agent.

(c) Impose other requirements that the department determines are in the best interest of the State of Oregon as necessary to:

(A) Issue, sell or preserve the tax-exempt status, if any, of the OHSU Cancer Challenge Article XI-G Bonds; and

(B) Administer the grant.

(3) The department shall transfer the grant to the university when the department is satisfied that the university has complied, or will comply, with all of the terms and conditions imposed by Article XI-G of the Oregon Constitution, sections 19 to 23, chapter 121, Oregon Laws 2014, and the grant agreement required by this section.

(4) Subject to the approval of the State Treasurer, the department may:

(a) Enter into agreements with a trustee or escrow agent regarding the disbursement and use of the moneys granted to the university; and

(b) Transfer the moneys granted to the university directly to a trustee or escrow agent. [2014 c.121 §22; 2015 c.685 §9; 2015 c.767 §42; 2015 c.828 §36]

Sec. 23. Payment of bond-related costs. (1) For each biennium in which any part of the OHSU Cancer Challenge Article XI-G Bonds remain outstanding, the Oregon Department of Administrative Services shall request that the Governor include in the Governor’s budget to the Legislative Assembly an amount that is sufficient to pay the bond-related costs that become due in the biennium.

(2) The Legislative Assembly shall appropriate to the Oregon Department of Administrative Services any moneys made available to pay bond-related costs.

(3) Oregon Health and Science University is not obligated to pay the bond-related costs of the OHSU Cancer Challenge Article XI-G Bonds. [2014 c.121 §23; 2016 c.117 §74]

Sec. 24. Report on jobs created. The Oregon Health and Science University shall report annually to a committee or interim committee of the Legislative Assembly, as appropriate, with subject matter jurisdiction over economic development, business and industry, regarding the nature and number of new and ongoing jobs created at the university in connection with the operation of the OHSU Cancer Institute. [2014 c.121 §24]

Sec. 25. Repeal. Section 24 of this 2014 Act is repealed on January 2, 2024. [2014 c.121 §25]

Sec. 26. Plan for private sector development made in connection with OHSU Cancer Institute; report. (1) The Oregon Health and Science University and the Oregon Business Development Department shall collaborate to develop a plan that includes but is not limited to policy recommendations and recommendations for legislation, to encourage private sector development in Oregon of technologies related to cancer-related health care, education, research, developments and discoveries provided or made in connection with the operation of the OHSU Cancer Institute.

(2) The university and department shall report to the Legislative Assembly on the plan developed pursuant to subsection (1) of this section to the 2015 regular session of the Legislative Assembly in the manner prescribed by ORS 192.245 (Form of report to legislature). [2014 c.121 §26]

Sec. 27. Applicability of laws; employment of apprentices; awarding of contracts; Leadership in Energy and Environmental Design certification; report. (1) Notwithstanding the provisions of ORS 279A.025 (Application of Public Contracting Code) (2)(a)(B) and 353.100 (Applicability of laws to university) (2):

(a) For the purposes of this subsection, the Oregon Health and Science University is a public agency, as defined in ORS 279C.800 (Definitions for ORS 279C.800 to 279C.870), and the OHSU Cancer Institute Project, as defined in section 20 of this 2014 Act, is a public works, as defined in ORS 279C.800 (Definitions for ORS 279C.800 to 279C.870);

(b) The provisions of ORS 279C.800 (Definitions for ORS 279C.800 to 279C.870), 279C.810 (Exemptions), 279C.825 (Fees), 279C.827 (Division of public works project), 279C.829 (Agreement with other state to pay less than prevailing rate of wage), 279C.830 (Provisions concerning prevailing rate of wage in specifications, contracts and subcontracts), 279C.835 (Notifying commissioner of public works contract subject to prevailing wage), 279C.836 (Public works bond), 279C.838 (Applicability of state and federal rates of wage), 279C.840 (Payment of prevailing rate of wage), 279C.845 (Certified statements regarding payment of prevailing rates of wage), 279C.850 (Inspection to determine whether prevailing rate of wage being paid), 279C.855 (Liability for violations), 279C.860 (Ineligibility for public works contracts for failure to pay or post notice of prevailing rates of wage), 279C.865 (Civil penalties) and 279C.870 (Civil action to enforce payment of prevailing rates of wage) apply to any construction, reconstruction, major renovation or painting that the Oregon Health and Science University performs or contracts to perform in connection with the OHSU Cancer Institute Project or that any not-for-profit organization or other entity the university owns exclusively or creates to advance any of the university’s statutory missions performs or contracts to perform in connection with the OHSU Cancer Institute Project; and

(c) The provisions of ORS 279C.800 (Definitions for ORS 279C.800 to 279C.870), 279C.810 (Exemptions), 279C.825 (Fees), 279C.827 (Division of public works project), 279C.829 (Agreement with other state to pay less than prevailing rate of wage), 279C.830 (Provisions concerning prevailing rate of wage in specifications, contracts and subcontracts), 279C.835 (Notifying commissioner of public works contract subject to prevailing wage), 279C.836 (Public works bond), 279C.838 (Applicability of state and federal rates of wage), 279C.840 (Payment of prevailing rate of wage), 279C.845 (Certified statements regarding payment of prevailing rates of wage), 279C.850 (Inspection to determine whether prevailing rate of wage being paid), 279C.855 (Liability for violations), 279C.860 (Ineligibility for public works contracts for failure to pay or post notice of prevailing rates of wage), 279C.865 (Civil penalties) and 279C.870 (Civil action to enforce payment of prevailing rates of wage) apply to any construction, reconstruction, major renovation or painting that occurs in connection with the OHSU Cancer Institute Project, with or without using funds of a public agency, on real property that the Oregon Health and Science University owns, or on real property owned by any not-for-profit organization or other entity the university owns exclusively or creates to advance any of the university’s statutory missions.

(2) In all contracts for constructing, reconstructing, renovating or painting any improvement to real property in connection with the OHSU Cancer Institute Project, the Oregon Health and Science University shall provide that each contractor shall employ apprentices in apprenticeable occupations to perform work on the OHSU Cancer Institute Project on the same terms, at the same rates of wage and for the same percentage of the total hours worked that the university requires in the university’s other contracts for construction services. The university shall provide in the university’s contracts for constructing, reconstructing, renovating or painting improvements to real property in connection with the OHSU Cancer Institute Project that each contractor include the requirements set forth in this subsection in the contractor’s contracts with subcontractors.

(3) The Oregon Health and Science University shall consult with the Department of Environmental Quality to establish a set of criteria for giving a preference in awarding contracts in connection with the OHSU Cancer Institute Project to contractors that minimize emissions from diesel fuel to the greatest extent possible.

(4) The Oregon Health and Science University may seek Leadership in Energy and Environmental Design certification for any improvement to real property in connection with the OHSU Cancer Institute Project. The university shall pay the costs associated with obtaining a certification from the United States Green Building Council from university funds other than the proceeds of OHSU Cancer Challenge XI-G Bonds, as defined in section 20 of this 2014 Act, or the proceeds of the lottery bonds described in section 12 of this 2014 Act.

(5)(a) On or before each date on which the Legislative Assembly convenes in regular session, the Oregon Health and Science University, in a report to the Legislative Assembly, shall identify the geographical origin of each contractor, subcontractor or other vendor that performs construction work in connection with the OHSU Cancer Institute Project. For purposes of this subsection, a contractor’s, subcontractor’s or vendor’s geographical origin means the city or county and state in which the contractor, subcontractor or vendor maintains a headquarters or, if the location of the headquarters is not available, the state in which the contractor, subcontractor or vendor is incorporated or the city, county, state or other region in which the contractor, subcontractor or vendor conducts the majority of the contractor’s, subcontractor’s or vendor’s business operations.

(b) The Oregon Health Science University shall continue to report to the Legislative Assembly as provided in paragraph (a) of this subsection until construction on the OHSU Cancer Institute Project is complete or until December 31, 2018, whichever date is later. [2014 c.121 §27]

Sec. 28. Report on clinical trials. The Oregon Health and Science University shall report to each regular session of the Legislative Assembly, in the manner prescribed by ORS 192.245 (Form of report to legislature), the number and geographic distribution of Oregon residents who participated in clinical trials associated with the OHSU Cancer Institute during the previous 12-month period. [2014 c.121 §28]

Sec. 30. Repeal of reporting requirements. (1) Section 28 of this 2014 Act is repealed on January 2, 2024. [2014 c.121 §30 (1)]

1 Legislative Counsel Committee, CHAPTER 353—Oregon Health and Science University, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors353.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.