Bill Text: OR HB2003 | 2011 | Regular Session | Introduced


Bill Title: Relating to funds for maintaining state agency property; declaring an emergency.

Sponsorship: Partisan Bill (Republican 9)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2003 Detail]

Download: Oregon-2011-HB2003-Introduced.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3975

                         House Bill 2003

Sponsored by Representative SHEEHAN; Representatives CONGER,
  ESQUIVEL, GARRARD, HUFFMAN, KRIEGER, LINDSAY, PARRISH, WHISNANT

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires state agency that owns real property or operates
facilities to establish dedicated account to pay expenses of
maintaining, repairing and replacing state agency's real property
or facilities.
  Requires state agency that owns real property or operates
facilities to contract each year with private contractor to
conduct reserve study or to review existing reserve study to
determine requirements for reserve account established to
maintain, repair and replace state agency's real property or
facilities. Specifies requirements for reserve study.
  Specifies priorities for state agency's deposit of revenues
from rental or sale of state agency real property or facilities.
Specifies dates by which state agency must establish account,
begin funding account and fully fund account.
  Becomes operative 91 days after effective date of Act.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to funds for maintaining state agency property; creating
  new provisions; amending ORS 276.285; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 276.285 is amended to read:
  276.285. (1)   { - It is - }  The policy of the State of
Oregon, in keeping with the benchmark relating to public
infrastructure and development adopted by the Oregon Progress
Board, { +  is + } to facilitate and encourage state agencies
that own real property   { - and - }   { + or + } operate
facilities to manage and develop   { - these - }  { +  the
real + }
  { - properties - }  { +  property or facilities + } in an
effective and businesslike manner.   { - The maintenance,
preservation and development of - }  { +  Maintaining, preserving
and developing + } state-owned real property and facilities,
including, but not limited to, educational institutions,
hospitals, parks, roads, libraries and fish hatcheries is
essential to enable the State of Oregon to meet the needs of
 { - its - }  { +  the state's + } citizens now and in the
future. The purpose of chapter 452, Oregon Laws 1995, is to

maintain and protect the investment of the State of Oregon in
 { - its - }  { +  the state's + } public infrastructure.
  (2) { + (a) + }   { - Any - }  { +  A + } state agency that
owns   { - and operates - }  real property or { +  operates + }
facilities is authorized to establish a separate dedicated
account in the State Treasury for the purpose of paying the
expenses of constructing, operating,   { - maintaining,
repairing, replacing, - }  equipping, improving, acquiring and
disposing of   { - such - }  { +  the + } real property
 { - and - }  { +  or + } facilities.
   { +  (b)(A) A state agency that owns real property or operates
facilities shall establish a dedicated account in the State
Treasury separate and distinct from the General Fund, and
separate from and in addition to any account the state agency may
establish under paragraph (a) of this subsection, for the purpose
of paying the expenses of maintaining and repairing the state
agency's real property or facilities and replacing components or
portions of the state agency's facilities that are damaged beyond
maintenance or repair. The state agency shall set as a limit for
the amount of funds that may be kept in the account an amount
that is sufficient to pay the expenses of maintenance, repair and
replacement for the state agency's real property or facilities
during a period of at least one year and not more than 30 years.
  (B) The state agency shall establish the account in accordance
with the requirements set forth in a reserve study conducted
under subsection (3) of this section.
  (c) + }   { - All - }  Moneys in an account established
pursuant to this subsection are appropriated continuously to the
agency for the purposes described in this subsection.
 { - All - }  Interest earned on moneys in the account shall be
retained in and credited to the account.
   { +  (3)(a) A state agency that owns real property or operates
facilities shall contract each year with a private contractor to
conduct a reserve study or to review an existing reserve study to
determine requirements for the account described in subsection
(2)(b) of this section. The contractor must have expertise and
experience in conducting reserve studies of the type and scale
necessary to set requirements for the account described in
subsection (2)(b) of this section.
  (b) The reserve study or the review of an existing reserve
study must:
  (A) Identify the real property or facilities for which the
state agency must establish an account under subsection (2)(b) of
this section;
  (B) Estimate the remaining useful life, as of the date of the
reserve study, of the real property or facilities;
  (C) Estimate the cost, as of the date of the reserve study, of
maintaining, repairing and replacing the real property or
facilities; and
  (D) Specify the amounts that the state agency must deposit in
or credit to the account described in subsection (2)(b) of this
section in order to meet the requirements specified in subsection
(2)(b) of this section and section 2 of this 2011 Act. The
reserve study may specify amounts that the state agency must
deposit on a monthly, quarterly, annual or biennial basis to meet
the requirements. + }
    { - (3) - }  { +  (4) + }   { - Any - }  { +  A + } state
agency that owns   { - or operates - }  real property or { +
operates + } facilities may establish a rental program for the
purpose of recovering and paying for the costs, including debt
service, of constructing, operating, maintaining, repairing,
replacing, equipping, improving and disposing of real property
  { - and - }  { +  or + } facilities consistent with the
statutory authority of the state agency.   { - All - }  Revenues
from   { - such - }  { +  the + } rental programs shall be
deposited in the account established pursuant to subsection (2)
of this section.  { + The state agency shall credit the revenues
from the rental programs to the account established under
subsection (2)(b) of this section before crediting the proceeds
to any other account established under subsection (2) of this
section unless the account established under subsection (2)(b) of
this section is fully funded in accordance with the requirements
set forth in section 2 of this 2011 Act and the reserve study
described in subsection (3) of this section. + }
    { - (4) - }  { +  (5) + }   { - Whenever - }  { +  If + } a
state agency that owns   { - and operates - }  real property
 { - and - }  { +  or operates + } facilities  { - , - }  and
 { - that - } has   { - an - }  established { +  an + } account
under subsection (2) of this section sells or leases real
property, the  { + state agency shall credit the + } proceeds
from the sale or lease   { - shall be credited - }  to the
account established pursuant to subsection (2) of this section,
unless disposition of the proceeds is otherwise provided by
law. { +  The state agency shall credit the proceeds to the
account established under subsection (2)(b) of this section
before crediting the proceeds to any other account established
under subsection (2) of this section unless the account
established under subsection (2)(b) of this section is fully
funded in accordance with the requirements set forth in section 2
of this 2011 Act and in the reserve study described in subsection
(3) of this section. + }
    { - (5) - }  { +  (6) + } If a state agency that owns
 { - and operates - }  real property   { - and - }  { +  or
operates + } facilities has other statutory authority to provide
funding for real property and facility operation and management,
the agency may use   { - that - }  { +  the + } authority
  { - in lieu of or - }  in addition to the provisions of this
section.
    { - (6) - }  { +  (7) + }   { - When - }  { +  If + } a state
agency establishes an account pursuant to subsection (2) of this
section, the agency shall provide a report of the revenues to and
expenditures from the account as part of   { - its - }  { +  the
state agency's + } budget submission to the Governor and the
Legislative Assembly under ORS chapter 291.
  { - The establishment by - }  State agencies   { - of - }  { +
that establish + } rental rates for real property or facilities
pursuant to this section shall { +  establish the rental
rates + }   { - be - }  on a biennial basis as part of the budget
development process, but   { - modification of - }  { +  may
modify + } the rates   { - may be made - }  during the interim
between legislative sessions after   { - a report to the
Emergency Board of - }  { +  reporting + } the proposed rate
modification { +  to the Emergency Board + }.
   { +  (8) The Director of the Oregon Department of
Administrative Services may adopt rules that are necessary to
carry out the provisions of this section. + }
  SECTION 2.  { + (1) A reserve study described in ORS 276.285
(3) must be completed by January 31, 2012, for each state agency
that owns real property or operates facilities.
  (2) A state agency that owns real property or operates
facilities shall establish by March 31, 2012, the account
described in ORS 276.285 (2)(b) and shall begin depositing into
or crediting to the account the amounts necessary to fund the
account in accordance with the requirements set forth in ORS
276.285 (2)(b) and in the reserve study described in ORS 276.285
(3).
  (3) A state agency that owns real property or operates
facilities shall deposit into or credit to the account described
in ORS 276.285 (2)(b) all funds necessary to meet the
requirements of the reserve study described in ORS 276.285 (3)
not later than January 1, 2020.

  (4) The Director of the Oregon Department of Administrative
Services may adopt rules that are necessary to carry out the
provisions of this section. + }
  SECTION 3.  { + (1) Section 2 of this 2011 Act and the
amendments to ORS 276.285 by section 1 of this 2011 Act become
operative on the 91st day following the effective date of this
2011 Act.
  (2) The Director of the Oregon Department of Administrative
Services may take any action before the operative date specified
in subsection (1) of this section that is necessary to enable the
director to exercise, on and after the operative date specified
in subsection (1) of this section, all of the duties, functions
and powers conferred on the director by section 2 of this 2011
Act and the amendments to ORS 276.285 by section 1 of this 2011
Act. + }
  SECTION 4.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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