Bill Text: OR HB2345 | 2013 | Regular Session | Enrolled
Bill Title: Relating to critical infrastructure development; and declaring an emergency.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-07-12 - Chapter 621, (2013 Laws): Effective date July 12, 2013. [HB2345 Detail]
Download: Oregon-2013-HB2345-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2345
Sponsored by Representative READ (Presession filed.)
CHAPTER ................
AN ACT
Relating to critical infrastructure development; creating new
provisions; amending ORS 777.262 and 777.267; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + The Legislative Assembly finds that:
(1) Adequate public infrastructure systems are essential to a
vibrant economy. Oregon's needs for many kinds of infrastructure
development cannot be met using traditional development and
financing methods. To close an expected multibillion dollar
investment gap for the development of critical public
infrastructure and to secure a sound and resilient economy,
Oregon must attract innovation in design, financing and asset
management.
(2) Some public infrastructure projects require expertise in
identifying, procuring, negotiating and implementing projects
using a performance-based, life-cycle value method. To properly
utilize, manage and implement such a method and to ensure that
the public interest is protected through effective risk
mitigation, Oregon must establish a center of expertise that will
allow this state to take advantage of opportunities for
innovation, innovative financing and regional infrastructure
development while minimizing public risk and maximizing the value
obtained for taxpayer dollars. The design and implementation of
such a center of expertise should draw from successful models
that incorporate the flexibility and agility necessary to succeed
while preserving public transparency, accountability and
exemplary contracting attributes.
(3) To create an attractive marketplace that will draw high
bidder quality and competition, the western states need to be
established as a marketplace for innovative infrastructure
financing. This is best accomplished through regional
collaboration to establish best practices, coordinate interstate
projects, and increase visibility of regional projects. + }
SECTION 2. { + (1) The Oregon Innovation in Infrastructure
Task Force is established, consisting of 10 members appointed as
follows:
(a) The President of the Senate shall appoint two members from
among members of the Senate.
(b) The Speaker of the House of Representatives shall appoint
two members from among members of the House of Representatives.
(c) The Governor shall appoint four members as follows:
Enrolled House Bill 2345 (HB 2345-B) Page 1
(A) One member with experience in critical infrastructure
development and maintenance;
(B) One member with experience in private capital investment
opportunities and strategies;
(C) One member with experience in managing public project
development, delivery methods and financing; and
(D) One member who has participated in regional discussions and
collaborations regarding west coast infrastructure status and
needs.
(d) The Governor's Regional Solutions Director shall appoint
one member who represents the team members of the Regional
Solutions Centers.
(e) The State Treasurer shall appoint one member who represents
the State Treasurer.
(2) The task force shall make recommendations to the
Legislative Assembly regarding:
(a) Participation in a west coast infrastructure exchange
effort that partners with innovators in other states and regions
on the west coast to assess the status of existing
infrastructures and to establish a west coast marketplace for
innovation in infrastructure development, construction, financing
and delivery of overall life-cycle value. The task force shall
seek innovative methods to develop and implement critical
infrastructure projects, including but not limited to projects
involving energy transmission and efficiency, transportation,
water storage capacity, municipal water systems and wastewater
management. The task force shall consider necessary financial,
policy and other expertise from Oregon and other jurisdictions
and develop guidelines for parity of participation.
(b) Strategies for the creation, funding, function and
governance of an Oregon public corporation or other structure
that will be a center of expertise to encourage and implement
innovative practices, including:
(A) Performance-based contracting;
(B) Procurement for highest life-cycle value;
(C) Negotiated risk transfer to private participants;
(D) Combination of public and private construction capital; and
(E) Grouping of projects for efficiency in design,
construction, financing and maintenance.
(c) Effective utilization of methods and tools that will obtain
the best value from public expenditures for public infrastructure
by:
(A) Encouraging innovation in design, delivery, construction,
and financing;
(B) Providing greater access to sources of capital not
currently available for Oregon projects;
(C) Transferring risks associated with the design,
construction, financing, and long-term performance of
infrastructure to parties or entities that are best able to
manage the risk with economic efficiency;
(D) Ensuring competition;
(E) Combining similar projects for ease of financing and
economies of scale;
(F) Providing for the long-term performance of infrastructure
facilities through the use of well-structured maintenance
contracts that have scheduled costs and that reflect exemplary
contracting standards;
(G) Accelerating the delivery of projects; and
(H) Preserving the economic, workforce, and community benefits
of infrastructure projects through the application of contracting
Enrolled House Bill 2345 (HB 2345-B) Page 2
and sustainability standards, and policies, relating to
prevailing wages, emerging small businesses, women and
minorities.
(d) The responsibilities of the center of expertise, including
but not limited to providing services to enhance, improve and
maintain critical infrastructure systems in Oregon and on the
west coast by:
(A) Bundling similar critical infrastructure projects;
(B) Creating performance-based partnerships to manage projects
more efficiently;
(C) Collecting consistent, comprehensive and high quality data
regarding existing infrastructure systems and potential
infrastructure enhancements and development;
(D) Collaborating with industry experts and innovators;
(E) Providing technical assistance to design and finance
critical infrastructure projects; and
(F) Creating and implementing new mechanisms and strategies for
financing critical infrastructure projects, including but not
limited to attracting private investors that have traditionally
not invested in public infrastructure.
(e) A data platform that will help Oregon to identify,
inventory and publicize potential infrastructure projects, and to
facilitate consultation among project sponsors and funding
program managers.
(3) A majority of the members of the task force constitutes a
quorum for the transaction of business.
(4) Official action by the task force requires the approval of
a majority of the members of the task force.
(5) The task force shall elect one of its members to serve as
chairperson.
(6) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
(7) The task force shall meet at times and places specified by
the call of the chairperson or of a majority of the members of
the task force.
(8) The task force may adopt rules necessary for the operation
of the task force.
(9) The task force shall submit a report in the manner provided
by ORS 192.245, and shall include in the report the task force's
recommendations required under subsection (2) of this section, to
the interim committees of the Legislative Assembly related to
infrastructure and business development, as appropriate, no later
than December 31, 2013.
(10)(a) The State Treasurer and the Oregon Department of
Administrative Services shall provide staff support to the task
force.
(b) The department shall facilitate, manage and direct
consultation among state agencies with respect to infrastructure
needs and funding.
(11) Members of the task force who are not members of the
Legislative Assembly are not entitled to compensation, but may be
reimbursed for actual and necessary travel and other expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
expenses incurred in performing functions of the task force shall
be paid out of funds appropriated to the Oregon Department of
Administrative Services for purposes of the task force.
(12) All agencies of state government, as defined in ORS
174.111, are directed to assist the task force in the performance
Enrolled House Bill 2345 (HB 2345-B) Page 3
of its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the task force consider necessary to perform their
duties. + }
SECTION 3. ORS 777.262 is amended to read:
777.262. (1) The Legislative Assembly finds:
(a) That recent changes in federal law authorize the United
States Army Corps of Engineers to require ports and other local
communities to provide a portion of the costs of dredging harbors
and channels near those communities;
(b) That port districts and communities in this state cannot
afford to pay the costs necessary to continue the dredging
activities that are essential to keep the major harbors and
waterways navigable for larger vessels in maritime trade; and
(c) That the State of Oregon must therefore pay for
{ - such - } { + the + } dredging activities when ports
cannot, or this state must tolerate the loss of maritime trade
and commerce that will inevitably result from the halt of
dredging activities.
(2) Therefore, it is the purpose of this section and { + one
purpose of + } ORS 777.267 to provide a method of financing
{ - required - } { + all or part of the nonfederal portion of
the costs of + } dredging activities { + that constitute new
federally authorized navigation improvements + } in the ports of
this state when those ports are unable to finance { - such - }
{ + the + } activities.
SECTION 4. ORS 777.267 is amended to read:
777.267. (1) { - There is established in the State
Treasury - } The Marine Navigation Improvement Fund { + is
established in the State Treasury, separate and distinct from the
General Fund + }. Interest earned by the Marine Navigation
Improvement Fund shall be credited to the fund. The moneys in the
fund and interest earnings on the moneys in the fund are
continuously appropriated to the Oregon Business Development
Department for the Oregon Infrastructure Finance Authority for
the purposes of:
(a) Paying a portion of the { + construction + } costs of
dredging activities that { + constitute new federally authorized
navigation improvement projects and + } are carried out in the
harbors and channels on the Oregon coast and along the Columbia
River when federal law or regulation requires a portion of the
costs { - of such dredging - } to be paid by nonfederal
interests; { - and - }
(b) Paying the study and construction costs of other new
navigation improvement projects that directly support { + , or
provide access to, + } a federally authorized navigation
improvement project { - . - } { + ; and
(c) Paying the study and construction costs of maintenance
projects related to existing federally authorized navigation
improvement projects. + }
(2) The Marine Navigation Improvement Fund established by this
section consists of moneys appropriated to the fund by the
Legislative Assembly, repayment of loans made with moneys in the
fund and bond proceeds deposited in the fund.
(3) Moneys in the fund shall be used primarily to make loans to
ports for eligible projects. The authority may award a grant or
provide other assistance from moneys in the fund to a port for an
eligible project only if a loan is not feasible due to the
financial hardship of the port or other special circumstances, as
set forth in rules adopted by the department.
Enrolled House Bill 2345 (HB 2345-B) Page 4
(4) Eligibility for assistance from the Marine Navigation
Improvement Fund shall be limited to and funded, subject to the
availability of funds, in the following order of priority:
{ - (a) Federally authorized studies and construction of new
navigation improvement projects. - }
{ + (a) Maintenance projects related to existing federally
authorized navigation improvement projects. + }
(b) Other new navigation improvement projects { - if the
projects - } { + that + } directly support { + , + } or provide
access to { + , + } a federally authorized navigation improvement
project or a federally authorized navigation channel.
{ + (c) New federally authorized navigation improvement
projects. + }
(5) { + The authority shall limit + } financial assistance for
construction costs under subsection { - (4)(a) - }
{ + (1)(a) + } of this section { - shall be limited - } to
those projects that have completed all federally required studies
{ - and have confirmed positive cost-benefit ratios as required
by the National Economic Development Plan - } .
(6) { + The authority shall limit + } financial assistance for
construction costs under subsection { - (4)(b) - }
{ + (1)(b) + } of this section { - is limited - } to projects
sponsored by a port, as defined in ORS 777.005 or 778.005, that
meet criteria developed by the authority.
(7) { + The authority shall limit + } financial assistance for
{ - studies of other new construction projects - } { + study
costs + } under subsection (1)(b) of this section { - is
limited - } to projects that meet criteria developed by the
authority.
{ + (8) The authority shall limit financial assistance for
study and construction costs under subsection (1)(c) of this
section to projects that meet criteria developed by the
authority. + }
SECTION 5. { + Section 2 of this 2013 Act is repealed on June
30, 2014. + }
SECTION 6. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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Passed by House April 3, 2013
Repassed by House June 27, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate June 26, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2345 (HB 2345-B) Page 5
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2345 (HB 2345-B) Page 6
