Bill Text: OR HB5036 | 2011 | Regular Session | Enrolled


Bill Title: Relating to lottery bonds; appropriating money; and declaring an emergency.

Spectrum: Unknown

Status: (Passed) 2011-07-06 - Chapter 624, (2011 Laws): Effective date July 6, 2011. [HB5036 Detail]

Download: Oregon-2011-HB5036-Enrolled.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

                            Enrolled

                         House Bill 5036

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of Budget and Management Division, Oregon
  Department of Administrative Services)

                     CHAPTER ................

                             AN ACT

Relating to lottery bonds; creating new provisions; amending ORS
  285B.551 and sections 4, 10, 14 and 29, chapter 906, Oregon
  Laws 2009; repealing section 15, chapter 30, Oregon Laws 2010;
  appropriating money; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 285B.551 is amended to read:
  285B.551. (1) Pursuant to ORS 286A.560 to 286A.585, at the
request of the Oregon Department of Administrative Services,
after the department consults with the Oregon Business
Development Department, the State Treasurer is authorized to
issue lottery bonds:
  (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, the Water Fund created by ORS 285B.563, the Safe
Drinking Water Revolving Loan Fund created by ORS 285A.213, the
Oregon Port Revolving Fund created by ORS 285A.708, the
Brownfields Redevelopment Fund created by ORS 285A.188, the
Oregon Business Development Fund created by ORS 285B.092 and the
Marine Navigation Improvement Fund created by ORS 777.267.
  (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

Enrolled House Bill 5036 (HB 5036-A)                       Page 1

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.
  (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)(a) 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   { - $266,226,252 - }
 { + $276,226,252 + } 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.
  (b) The Oregon Department of Administrative Services may not
request the issuance of lottery bonds under subsection (1)(b) of
this section until the Director of the Oregon Business
Development Department determines that 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. Interest earned by the Economic Infrastructure
Project Fund shall be credited to the fund. All moneys in the
Economic Infrastructure Project Fund are continuously
appropriated to the Oregon Business Development Department for
any purpose for which moneys in the Special Public Works Fund
created by ORS 285B.455 may be used, any purpose for which moneys
in the Water Fund created by ORS 285B.563 may be used, any
purpose for which moneys in the Safe Drinking Water Revolving
Loan Fund created by ORS 285A.213 may be used, any purpose for
which moneys in the Oregon Port Revolving Fund created by ORS
285A.708 may be used, any purpose for which moneys in the
Brownfields Redevelopment Fund created by ORS 285A.188 may be
used, any purpose for which moneys in the Oregon Business
Development Fund created by ORS 285B.092 may be used and any

Enrolled House Bill 5036 (HB 5036-A)                       Page 2

purpose for which moneys in the Marine Navigation Improvement
Fund created by ORS 777.267 may be used.  The Director of the
Oregon Business 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 Business Development
Commission in accordance with ORS 285A.020. 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 Business, Innovation and Trade Fund
created by ORS 285A.227 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 under 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.
  SECTION 2.  { + (1) Pursuant to ORS 286A.560 to 286A.585, at
the request of the Oregon Department of Administrative Services,
after the department consults with the Oregon University System,
the State Treasurer is authorized to issue lottery bonds for
capital construction, deferred maintenance and capital renewal,
code compliance and safety projects.
  (2) The use of lottery bond proceeds is authorized based on the
following findings:
  (a) New buildings and facilities are needed in order for
universities to have adequate facilities for teaching.
  (b) Having adequate university buildings and facilities is
essential to Oregon's healthy economic growth.
  (c) Major subsystems within university buildings are wearing
out and must be replaced in order for universities to have
adequate facilities for teaching.
  (d) Having safe and fully functioning university facilities is
essential to Oregon's healthy economic growth.
  (3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1) of this section by the State Treasurer
for:

Enrolled House Bill 5036 (HB 5036-A)                       Page 3

  (a) Capital construction, including deferred maintenance, may
not exceed the amount of $87,479,000 and an additional amount
estimated by the State Treasurer to be necessary to pay
bond-related costs as defined in ORS 286A.560.
  (b) Capital renewal, code compliance and safety projects may
not exceed the amount of $25 million and an additional amount
estimated by the State Treasurer to be necessary to pay
bond-related costs as defined in ORS 286A.560.
  (4) Of the net proceeds of lottery bonds issued pursuant to
this section for the biennium beginning July 1, 2011, an amount
not to exceed:
  (a) $25 million shall be deposited into the Oregon University
System Capital Construction, Deferred Maintenance and Capital
Repair Project Fund established in section 3, chapter 788, Oregon
Laws 2005.
  (b) $87,479,000 shall be deposited into the Oregon University
System Fund established in ORS 351.506, segregated in a distinct
subaccount to allow necessary compliance under the Internal
Revenue Code. + }
  SECTION 3. Section 4, chapter 906, Oregon Laws 2009, is amended
to read:
   { +  Sec. 4. + } (1) Pursuant to ORS 286A.560 to 286A.585, at
the request of the Oregon Department of Administrative Services,
after the department consults with the Housing and Community
Services Department, the State Treasurer is authorized to issue
lottery bonds for the Housing and Community Services Department
to provide financial assistance to aid in the acquisition,
renovation or maintenance of section 8 housing or other housing
with federal rent subsidies.
  (2) The use of lottery bond proceeds is authorized based on the
following findings:
  (a) Individuals who are at risk of homelessness or who
otherwise pay a disproportionate share of income for housing
increase their potential for self-sufficiency, and use
proportionately fewer community-funded resources when they are
provided a stable housing environment.
  (b) Having housing for at-risk populations is essential to
Oregon's healthy economic growth.
  (3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1) of this section may not exceed the
amount of   { - $16,301,718 - }   { + $21,301,718 + } plus an
additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs as defined in ORS 286A.560.
  SECTION 4.  { + (1) For the biennium beginning July 1, 2011, at
the request of the Oregon Department of Administrative Services,
after the department consults with the Water Resources
Department, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286A.560 to 286A.585 in an amount not to
exceed net proceeds of $1,229,052 for the purpose described in
subsection (2) of this section, plus an additional amount
estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Net proceeds of lottery bonds issued under this section
must be transferred to the Water Resources Department for deposit
in the Water Resources Department Water Supply Fund established
under section 10, chapter 906, Oregon Laws 2009, sufficient to
provide $1,229,052 in net proceeds and interest earnings to
provide grants for feasibility studies for water conservation,
reuse and storage projects.

Enrolled House Bill 5036 (HB 5036-A)                       Page 4

  (3) 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 following findings:
  (a) Adequate drinking water systems, irrigation, drainage and
healthy ecosystems enhance community development and encourage
economic growth.
  (b) Having adequate drinking water systems, irrigation,
drainage and healthy ecosystems is essential to Oregon's economic
growth.
  (c) Assisting local governments to mitigate losses resulting
from reduced water supply for irrigation and retirement of water
rights will enhance community efforts to facilitate and promote
economic growth.
  (d) Increasing the use of renewable energy will assist in
reducing energy costs in the long term, which allows for
sustainable economic growth. + }
  SECTION 5. Section 10, chapter 906, Oregon Laws 2009, is
amended to read:
   { +  Sec. 10. + } (1) The Water Resources Department Water
Supply Fund is established separate and distinct from the General
Fund.  Interest earned   { - by - }   { + on moneys deposited
in + } the Water Resources Department Water Supply Fund shall be
credited to the fund. { +  Moneys in the fund are continuously
appropriated to the Water Resources Department.
  (2) The Water Resources Department Water Supply Fund consists
of: + }
    { - (2) - }   { + (a) + } Net proceeds of lottery bonds
issued pursuant to sections 8 and 9   { - of this 2009 Act - }
, { +  chapter 906, Oregon Laws 2009, + }   { - shall be - }
deposited into the Water Resources Department Water Supply Fund
 { - . Moneys in the fund are continuously appropriated as
follows - }  { +  for the following purposes + }:
    { - (a) - }   { + (A) + } $2,500,000 for the purposes of
issuing grants to develop Umatilla Basin critical ground water
storage projects described in section 17, chapter 907, Oregon
Laws 2009   { - (Enrolled House Bill 3369) - } , and to provide
or pay for services in connection with those projects.
    { - (b) - }   { + (B) + } $217,000 to pay for the operation
of loan and grant programs under sections 18 to 27, chapter 907,
Oregon Laws 2009
  { - (Enrolled House Bill 3369) - } .
    { - (c) - }   { + (C) + } $283,000 for the purpose of
developing an integrated state water resources strategy to
implement the state water resources policy pursuant to ORS
536.220 and section 45, chapter 907, Oregon Laws 2009
 { - (Enrolled House Bill 3369) - } .
    { - (d) - }   { + (D) + } $500,000 for purposes of the grant
program established by section 1, chapter 13, Oregon Laws 2008.
   { +  (b) Net proceeds of lottery bonds issued pursuant to
section 4 of this 2011 Act in an amount sufficient to provide
$1,229,052 in net proceeds and interest earnings for the
department to finance grants for feasibility studies for water
conservation, reuse and storage projects.
  (c) Any other fees, revenues or income deposited in the fund by
the Legislative Assembly. + }
  SECTION 6.  { + (1) For the biennium beginning July 1, 2011, at
the request of the Oregon Department of Administrative Services,
after the department consults with the Port of Morrow, the State

Enrolled House Bill 5036 (HB 5036-A)                       Page 5

Treasurer is authorized to issue lottery bonds pursuant to ORS
286A.560 to 286A.585 in an amount not to exceed net proceeds of
$3.2 million for the purpose described in subsection (2) of this
section, plus an additional amount estimated by the State
Treasurer to be necessary to pay bond-related costs.
  (2) Net proceeds of lottery bonds issued pursuant to this
section in an amount sufficient to provide $3.2 million in net
proceeds and interest earned must be transferred to the
department for disbursement to the Port of Morrow for the purpose
of Willow Creek/SAGE Center improvements, including construction
of sidewalks or other walkways.
  (3) 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
because:
  (a) The proceeds will be used to construct or improve public
infrastructure that facilitate and promote tourism and that
provide access to cultural and educational facilities.
  (b) The projects will create jobs in tourism and
construction. + }
  SECTION 7.  { + The Willow Creek/SAGE Center Improvements Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned on moneys in the Willow
Creek/SAGE Center Improvements Fund shall be credited to the
fund. The Willow Creek/SAGE Center Improvements Fund consists of
moneys deposited in the fund under section 6 of this 2011 Act and
may include fees, revenues or other income deposited into the
fund by the Legislative Assembly. Moneys in the fund are
continuously appropriated to the Oregon Department of
Administrative Services for disbursement to the Port of Morrow
for the purpose of Willow Creek/SAGE Center improvements,
including construction of sidewalks or other walkways. + }
  SECTION 8.  { + (1) For the biennium beginning July 1, 2011, at
the request of the Oregon Department of Administrative Services,
after the department consults with the City of Hermiston, the
State Treasurer is authorized to issue lottery bonds pursuant to
ORS 286A.560 to 286A.585 in an amount not to exceed net proceeds
of $6.4 million for the purpose described in subsection (2) of
this section, plus an additional amount estimated by the State
Treasurer to be necessary to pay bond-related costs.
  (2) Net proceeds of lottery bonds issued under this section in
an amount sufficient to provide $6.4 million in net proceeds and
interest earnings for transfer to the department for disbursement
to the City of Hermiston for the purpose of acquiring,
developing, constructing and equipping the Eastern Oregon Trade
Center.
  (3) 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 following findings:
  (a) The human capital and other resources of eastern Oregon are
underutilized;
  (b) The Eastern Oregon Trade Center will be a resource to
promote and focus attention on the development potential of the
region; and
  (c) Construction of the Eastern Oregon Trade Center will create
jobs. + }

Enrolled House Bill 5036 (HB 5036-A)                       Page 6

  SECTION 9.  { + (1) The Eastern Oregon Trade Center Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned on moneys in the Eastern Oregon
Trade Center Fund shall be credited to the fund. The Eastern
Oregon Trade Center Fund consists of moneys deposited in the fund
under section 8 of this 2011 Act and may include fees, revenues
or other income deposited into the fund by the Legislative
Assembly.
  (2) Moneys in the fund are continuously appropriated to the
Oregon Department of Administrative Services for disbursement to
the City of Hermiston for the purpose of acquiring, developing,
constructing and equipping the Eastern Oregon Trade Center. + }
  SECTION 10.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, after the department consults with the Milton-Freewater
Water Control District, the State Treasurer is authorized to
issue lottery bonds pursuant to ORS 286A.560 to 286A.585 in an
amount not to exceed net proceeds of $2.9 million for the purpose
described in subsection (2) of this section, plus an additional
amount estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Net proceeds of lottery bonds issued under this section in
the amount sufficient to provide $2.9 million in net proceeds and
interest earned must be transferred to the department for
disbursement to the Milton-Freewater Water Control District for
public infrastructure improvements, including levee restoration
and repair projects and bridge projects, in Milton-Freewater and
surrounding areas.
  (3) 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 following findings:
  (a) Public investment in flood controls and transportation
infrastructure encourage and promote private capital investment
and economic development; and
  (b) Construction projects will create jobs in Milton-Freewater
and the surrounding area. + }
  SECTION 11.  { + (1) The Milton-Freewater Levee and Bridge
Improvement Fund is established in the State Treasury, separate
and distinct from the General Fund. Interest earned on moneys in
the Milton-Freewater Levee and Bridge Improvement Fund shall be
credited to the fund. The Milton-Freewater Levee and Bridge
Improvement Fund consists of moneys deposited in the fund under
section 10 of this 2011 Act and may include fees, revenues or
other income deposited into the fund by the Legislative Assembly.
  (2) Moneys in the fund are continuously appropriated to the
Oregon Department of Administrative Services for disbursement to
the Milton-Freewater Water Control District for the purpose of
public infrastructure improvements, including levee restoration
and repair projects and bridge projects, in Milton-Freewater and
surrounding areas. + }
  SECTION 12.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, after the department consults with the Lane Transit
District, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286A.560 to 286A.585 in an amount not to
exceed net proceeds of $4.2 million for the purpose described in
subsection (2) of this section, plus an additional amount

Enrolled House Bill 5036 (HB 5036-A)                       Page 7

estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Net proceeds of lottery bonds issued under this section in
an amount sufficient to provide $4.2 million in net proceeds and
interest earnings for the department to deposit in the West
Eugene EmX Extension Fund for disbursement to the Lane Transit
District for the West Eugene EmX Extension, as defined in section
28, chapter 906, Oregon Laws 2009.
  (3) 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 findings identified by the Legislative Assembly in section
28, chapter 906, Oregon Laws 2009. + }
  SECTION 13. Section 29, chapter 906, Oregon Laws 2009, is
amended to read:
   { +  Sec. 29. + } The West Eugene EmX Extension Fund is
established in the State Treasury, separate and distinct from the
General Fund.  Interest earned on moneys in the West Eugene EmX
Extension Fund shall be credited to the fund. The West Eugene EmX
Extension Fund consists of moneys deposited in the fund under
section 28   { - of this 2009 Act - } ,  { + chapter 906, Oregon
Laws 2009, and section 12 of this 2011 Act, + } and may include
fees, revenues or other income deposited into the fund by the
Legislative Assembly for payment of costs incurred to establish
the West Eugene EmX Extension. Moneys in the fund are
continuously appropriated to the Oregon Department of
Administrative Services for:
  (1) Disbursement to the Lane Transit District   { - to pay
$1,600,000 of - }   { + of moneys appropriated by the Legislative
Assembly for the purpose of paying + } the costs incurred to
establish the West Eugene EmX Extension.
  (2) Payment of bond-related costs, as defined in ORS 286A.560.
  SECTION 14.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, after the department consults with the Oregon
Historical Society, the State Treasurer is authorized to issue
lottery bonds pursuant to ORS 286A.560 to 286A.585 in an amount
not to exceed net proceeds of $2.5 million for the purpose
described in subsection (2) of this section, plus an additional
amount estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Net proceeds of lottery bonds issued pursuant to this
section in an amount sufficient to provide $2.5 million in net
proceeds and interest earnings to the department for disbursement
to the Oregon Historical Society for payment of costs associated
with the mortgage on the society's storage facility in Gresham.
  (3) 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 following findings:
  (a) The mission of the Oregon Historical Society is not just to
preserve Oregon's documentary history but to utilize the
documents preserved to educate Oregonians of all ages.
  (b) By relieving the society of the mortgage costs on the
society's storage facility, the society is able to focus more
resources on operations that serve the society's mission. + }
  SECTION 15.  { + (1) The Oregon Historical Society Mortgage
Relief Fund is established in the State Treasury, separate and

Enrolled House Bill 5036 (HB 5036-A)                       Page 8

distinct from the General Fund. Interest earned on moneys in the
Oregon Historical Society Mortgage Relief Fund shall be credited
to the fund. The Oregon Historical Society Mortgage Relief Fund
consists of moneys deposited in the fund under section 14 of this
2011 Act and may include fees, revenues or other income deposited
into the fund by the Legislative Assembly.
  (2) Moneys in the fund are continuously appropriated to the
Oregon Department of Administrative Services for disbursement to
the Oregon Historical Society to pay costs associated with the
mortgage on the society's storage facility in Gresham. + }
  SECTION 16.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, after the department consults with the State Board of
Forestry, the State Treasurer is authorized to issue lottery
bonds pursuant to ORS 286A.560 to 286A.585 in an amount not to
exceed net proceeds of $1,980,000 for the purpose described in
subsection (2) of this section, plus an additional amount
estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Notwithstanding ORS 526.060, net proceeds of lottery bonds
issued under this section in an amount sufficient to provide
$1,980,000 in net proceeds and interest earnings for deposit in
the State Forest Acquisition Fund established under section 14,
chapter 906, Oregon Laws 2009, for the purpose of acquiring
parcels in the Gilchrist area of Klamath County for use as state
forestland.
  (3) The Legislative Assembly finds that:
  (a) The Gilchrist area of Klamath County is an economically
stressed region;
  (b) State acquisition of parcels located in the Gilchrist area
of Klamath County for management as state forestland would
produce economic benefits for the area, including but not limited
to income from the harvest of forest products and direct
employment and economic benefit from processing harvested forest
products;
  (c) State acquisition of parcels in the Gilchrist area of
Klamath County and management of those parcels as state
forestland will result in increased employment in the tourism
industry and other industries related to the development of
recreational attractions on parcels;
  (d) There exists a substantial risk that failure to acquire
certain parcels in the Gilchrist area of Klamath County for use
as state forestland will result in the parcels being converted to
nonforest use, resulting in the loss of existing forest industry
jobs and existing jobs in related industries in the area; and
  (e) The use of lottery bond proceeds as provided in this
section will create jobs, further economic development, finance
public education or protect parks, watersheds, fish or wildlife
within Oregon, and issuance of lottery bonds for the purpose
described in this section is therefore an appropriate use of
state lottery funds under section 4, Article XV of the Oregon
Constitution, and ORS 461.510. + }
  SECTION 17. Section 14, chapter 906, Oregon Laws 2009 is
amended to read:
   { +  Sec. 14. + } The State Forest Acquisition Fund is
established in the State Treasury, separate and distinct from the
General Fund.  The State Forest Acquisition Fund shall consist of
moneys deposited in the fund under section 13   { - of this 2009
Act - }  { + , chapter 906, Oregon Laws 2009, and section 16 of
this 2011 Act, and may include fees, revenues or other income

Enrolled House Bill 5036 (HB 5036-A)                       Page 9

deposited into the fund by the Legislative Assembly + }. The
moneys in the State Forest Acquisition Fund and the interest
earnings on moneys in the fund are continuously appropriated to
the State Board of Forestry for the purpose of acquiring parcels
in the Gilchrist area of Klamath County for use as state
forestland.
  SECTION 18.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, after the department consults with the Department of
Veterans' Affairs, the State Treasurer is authorized to issue
lottery bonds pursuant to ORS 286A.560 to 286A.585 in an amount
not to exceed net proceeds of $10.5 million for the purpose
described in subsection (2) of this section, plus an additional
amount estimated by the State Treasurer to be necessary to pay
bond-related costs.
  (2) Net proceeds of lottery bonds issued under this section in
an amount sufficient to provide $10.5 million in net proceeds and
interest earnings must be transferred to the Department of
Veterans' Affairs and deposited in the Roseburg Veterans' Home
Construction Fund established in section 19 of this 2011 Act for
the purpose of acquiring, developing, constructing and equipping
the Roseburg Veterans' Home.
  (3) 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 establishment of the Roseburg Veterans' Home
will create jobs in construction and health care fields. + }
  SECTION 19.  { + The Roseburg Veterans' Home Construction Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned on moneys in the Roseburg
Veterans' Home Construction Fund shall be credited to the fund.
The Roseburg Veterans' Home Construction Fund consists of moneys
deposited in the fund under section 18 of this 2011 Act and may
include fees, revenues or other income deposited into the fund by
the Legislative Assembly for payment of costs incurred to
acquire, develop, construct and equip the Roseburg Veterans'
Home. Moneys in the fund are continuously appropriated to the
Department of Veterans' Affairs for the purpose of acquiring,
developing, constructing and equipping the Roseburg Veterans'
Home. + }
  SECTION 20.  { + (1) For the biennium beginning July 1, 2011,
at the request of the Oregon Department of Administrative
Services, in consultation with the Department of Transportation,
the State Treasurer is authorized to issue lottery bonds pursuant
to ORS 286A.560 to 286A.585 in an amount not to exceed net
proceeds of $40 million for the purpose described in subsection
(2) of this section, plus an additional amount, to be estimated
by the State Treasurer, for payment of bond-related costs.
  (2) Net proceeds of lottery bonds issued pursuant to this
section must be deposited in the Multimodal Transportation Fund
established under ORS 367.080 sufficient to provide $40 million
in net proceeds and interest earnings for the Department of
Transportation to finance grants and loans for transportation
projects as provided in ORS 367.080 to 367.086.
  (3) Bond-related costs for the lottery bonds authorized by this
section must be paid from the gross proceeds of the lottery bonds
and from allocations for the purposes of ORS 286A.576 (1)(c).
  (4) The Legislative Assembly finds that issuing lottery bonds
to finance transportation projects pursuant to this section is

Enrolled House Bill 5036 (HB 5036-A)                      Page 10

essential to promoting the state's economic development and the
use of lottery bond proceeds is authorized based on the following
findings:
  (a) There is an urgent need to improve and expand publicly
owned and privately owned transportation infrastructure to
support economic development in this state.
  (b) A safe, efficient and reliable transportation network
supports the long-term economic development and livability of
this state.
  (c) A multimodal network of air, rail, public transit, highway
and marine transportation moves people and goods efficiently.
  (d) Local governments and private sector businesses often lack
capital and the technical capacity to undertake multimodal
transportation projects.
  (e) Public financial assistance can stimulate industrial growth
and commercial enterprise and promote employment opportunities in
this state.
  (f) Public investment in transportation infrastructure will
create jobs and further economic development in this state.
  (g) The use of lottery bond proceeds as provided in this
section will create jobs, further economic development, finance
public education or protect parks, watersheds, fish or wildlife
within Oregon, and issuance of lottery bonds for the purpose
described in this section is therefore an appropriate use of
state lottery funds under section 4, Article XV of the Oregon
Constitution, and ORS 461.510. + }
  SECTION 21.  { + To the extent that proposed transportation
projects meet the qualifications established by the Oregon
Transportation Commission by rule, the commission shall allocate
at least 10 percent of the net proceeds of the lottery bonds
authorized by section 20 of this 2011 Act to each region
described in this section. For purposes of this section, the
regions are as follows:
  (1) Region one consists of Clackamas, Columbia, Hood River,
Multnomah and Washington Counties.
  (2) Region two consists of Benton, Clatsop, Lane, Lincoln,
Linn, Marion, Polk, Tillamook and Yamhill Counties.
  (3) Region three consists of Coos, Curry, Douglas, Jackson and
Josephine Counties.
  (4) Region four consists of Crook, Deschutes, Gilliam,
Jefferson, Klamath, Lake, Sherman, Wasco and Wheeler Counties.
  (5) Region five consists of Baker, Grant, Harney, Malheur,
Morrow, Umatilla, Union and Wallowa Counties. + }
  SECTION 22.  { + Section 15, chapter 30, Oregon Laws 2010, is
repealed. + }
  SECTION 23.  { + 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
July 1, 2011. + }
                         ----------

Enrolled House Bill 5036 (HB 5036-A)                      Page 11

Passed by House June 30, 2011

    .............................................................
                         Ramona Kenady Line, Chief Clerk of House

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Passed by Senate June 30, 2011

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 5036 (HB 5036-A)                      Page 12

Received by Governor:

......M.,............., 2011

Approved:

......M.,............., 2011

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2011

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 5036 (HB 5036-A)                      Page 13
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