Bill Text: OR HB3464 | 2013 | Regular Session | Enrolled
Bill Title: Relating to public borrowing for Coos Bay channel project; and declaring an emergency.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-08-26 - Chapter 754, (2013 Laws): Effective date August 14, 2013. [HB3464 Detail]
Download: Oregon-2013-HB3464-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 3464
Sponsored by Representative MCKEOWN; Representatives BENTZ,
GORSEK, HARKER, HUFFMAN, KOMP, KRIEGER, MCLANE, PARRISH, UNGER,
Senators JOHNSON, KRUSE, ROBLAN, WHITSETT
CHAPTER ................
AN ACT
Relating to public borrowing for Coos Bay channel project;
amending sections 13 and 14, chapter 746, Oregon Laws 2007; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 13, chapter 746, Oregon Laws 2007, as
amended by section 1, chapter 900, Oregon Laws 2009, is amended
to read:
{ + Sec. 13. + } (1) In addition to amounts authorized under
ORS 286.505 to 286.545 (2005 Edition) or pursuant to ORS
286A.035, the State Treasurer, at the request of the Director of
the { - Economic and Community - } { + Oregon Business + }
Development Department, may issue lottery bonds pursuant to ORS
286A.560 to 286A.585:
(a) In an amount of up to $60 million for payment of the
expenses of the Coos Bay Channel Project in increments described
in subsection (2) of this section; and
(b) In an additional amount to be estimated by the State
Treasurer for payment of bond-related costs of the Oregon
Department of Administrative Services, the { - Economic and
Community - } { + Oregon Business + } Development Department
and the State Treasurer.
(2) The director shall request { + that + } the State
Treasurer { - to - } issue the amount of bonds described in
subsection (1)(a) of this section in increments that allow the
director, at the request of the primary sponsor, to transfer:
(a) In the biennium beginning July 1, 2007, up to $5 million in
net proceeds of lottery bonds to the Coos Bay Channel Fund
established in section 15, chapter 746, Oregon Laws 2007, for
distribution to the primary sponsor after the director finds that
the primary sponsor has taken action pursuant to the grant
agreement required in section 14, chapter 746, Oregon Laws 2007,
that triggers the distribution of bond proceeds described in this
paragraph.
(b) In the biennium beginning July 1, { - 2011 - } { +
2015 + }, up to $15 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15, chapter 746,
Oregon Laws 2007, for distribution to the primary sponsor after
the director finds that the primary sponsor has taken action
pursuant to the grant agreement required in section 14, chapter
Enrolled House Bill 3464 (HB 3464-A) Page 1
746, Oregon Laws 2007, that triggers the distribution of bond
proceeds described in this paragraph.
(c) In the biennium beginning July 1, { - 2013 - } { +
2017 + }, up to $40 million in net proceeds of lottery bonds to
the Coos Bay Channel Fund established in section 15, chapter 746,
Oregon Laws 2007, for distribution to the primary sponsor after
the director finds that the primary sponsor has taken action
pursuant to the grant agreement required in section 14, chapter
746, Oregon Laws 2007, that triggers the distribution of bond
proceeds described in this paragraph.
SECTION 2. Section 14, chapter 746, Oregon Laws 2007, as
amended by section 2, chapter 900, Oregon Laws 2009, is amended
to read:
{ + Sec. 14. + } (1) The Director of the { - Economic and
Community - } { + Oregon Business + } Development Department
shall enter into one or more grant agreements with the primary
sponsor that require the
{ - Economic and Community - } { + Oregon Business + }
Development Department to disburse, over the course of the
project, an aggregate principal amount of $60 million for payment
of the expenses of the Coos Bay Channel Project, in the
increments described in section 13 (2), chapter 746, Oregon Laws
2007, from the Coos Bay Channel Fund established pursuant to
section 15, chapter 746, Oregon Laws 2007, to the primary
sponsor. The department shall make disbursements from the fund as
soon as bond proceeds are deposited in the fund.
(2) The one or more grant agreements must:
(a) Subject to subsection (4) of this section, establish
appropriate triggers for the incremental biennial distribution of
bond proceeds described in section 13 (2), chapter 746, Oregon
Laws 2007, based on appropriate measures of progress in
completion of the project that are satisfactory to the director
and consistent with prudent financial practices that reflect
sound stewardship of public resources.
(b) Require the primary sponsor to:
(A) Return bond proceeds distributed and reimburse the State of
Oregon for expenditures made pursuant to sections 11 to 15,
chapter 746, Oregon Laws 2007, if the director determines that
the project is not substantially completed by July 1,
{ - 2021 - } { + 2023 + }, unless the project is not
substantially completed:
(i) Due to an act of God; or
(ii) Because the State of Oregon fails to distribute one or
more of the increments of bond proceeds described in section 13
(2), chapter 746, Oregon Laws 2007, and required to substantially
complete the project, for a reason other than a failure of the
primary sponsor to take action to trigger the distribution or a
failure of the project to meet federal or state environmental
permitting standards necessary to complete the project.
(B) Provide evidence satisfactory to the director that the
primary sponsor has obtained a letter of credit, entered into a
surety bond agreement or provided other similar financial
assurance to guarantee the return of bond proceeds and
reimbursement for expenditures required by this paragraph.
(3) Notwithstanding subsection (2)(b)(B) of this section, the
primary sponsor may choose to guarantee the bond proceeds
distributed and the state expenditures made in the biennium
beginning July 1, 2007, by converting the amount into a loan
subject to an agreement that allows the primary sponsor to repay
Enrolled House Bill 3464 (HB 3464-A) Page 2
the amount over time at terms provided for in the grant
agreement.
(4)(a) Prior to the distribution of bond proceeds described in
section 13 (2)(a), chapter 746, Oregon Laws 2007, the primary
sponsor shall provide to the director a budget document outlining
expenditures for the Coos Bay Channel Project and verify and
certify to the director that:
(A) The primary sponsor has entered into a commercially
reasonable agreement with a cargo terminal developer to construct
and operate cargo terminal facilities on the Coos Bay channel;
(B) The Secretary of the Army has authorized the performance of
environmental studies on the channel pursuant to section 203 of
the Water Resources Development Act of 1986 (P.L. 99-662); and
(C) The cargo terminal developer has entered into, or made
appropriate progress in negotiations toward, a contract with rail
service providers to ensure adequate rail infrastructure and
service capacity to serve the cargo terminal facilities to be
developed as part of the Coos Bay Channel Project.
(b) Prior to the distribution of bond proceeds described in
section 13 (2)(b), chapter 746, Oregon Laws 2007, the primary
sponsor shall provide an updated budget document outlining
expenditures for the Coos Bay Channel Project and verify and
certify to the director that:
(A) The Secretary of the Army has provided a favorable
recommendation to Congress to proceed with the Coos Bay Channel
Project; and
(B) The primary sponsor has obtained, or has reasonable
assurance of obtaining, adequate funding to complete permitting
and engineering work on the Coos Bay Channel Project.
(c) Prior to the distribution of bond proceeds described in
section 13 (2)(c), chapter 746, Oregon Laws 2007, the primary
sponsor shall provide an updated budget outlining expenditures
for the completion of the Coos Bay Channel Project and verify and
certify to the director that:
(A) The sponsor has received the necessary approvals and
permits under ORS 196.600 to 196.905 and section 404 of the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) to
allow the Coos Bay Channel Project to be completed; and
(B) The primary sponsor has obtained, or has reasonable
assurance of obtaining, adequate funding to complete the Coos Bay
Channel Project.
(5) The State of Oregon and its agencies and departments are
not liable to the lenders, vendors or contractors of the Oregon
sponsors for any action or omission under sections 11 to 15,
chapter 746, Oregon Laws 2007.
(6) By receipt of any part of net proceeds of lottery bonds
described in section 13, chapter 746, Oregon Laws 2007, the
primary sponsor agrees to indemnify the state and its agencies
and departments to the fullest extent permitted by law for
liability the state or its agencies and departments might incur
in connection with any borrowing by the primary sponsor for the
project.
{ + (7) The director and the primary sponsor shall modify the
existing grant agreement as may be necessary to incorporate the
amendments to this section and section 13, chapter 746, Oregon
Laws 2007, by sections 1 and 2 of this 2013 Act. + }
SECTION 3. { + 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. + }
Enrolled House Bill 3464 (HB 3464-A) Page 3
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Passed by House July 6, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate July 7, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 3464 (HB 3464-A) Page 4
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 3464 (HB 3464-A) Page 5
