Bill Text: OR SB342 | 2011 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the use of Parks and Natural Resources Fund moneys; appropriating money; and declaring an emergency.

Spectrum: Unknown

Status: (Passed) 2011-08-01 - Effective date, July 21, 2011. [SB342 Detail]

Download: Oregon-2011-SB342-Engrossed.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 2001

                           B-Engrossed

                         Senate Bill 342
                  Ordered by the Senate June 21
     Including Senate Amendments dated April 15 and June 21

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Environment and Natural Resources)

                             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.

  Revises statutory provisions relating to lottery moneys
constitutionally directed toward acquisition, management and
protection of parks and recreation areas and toward financing
restoration and protection of native fish and wildlife,
watersheds and water quality. Changes permissible uses of moneys.
    { - Establishes Local Government Grants Subaccount within
State Parks and Recreation Department Fund for purpose of
awarding grants to regional or local government entities to
acquire or improve public parks, natural areas or outdoor
recreation areas.  Specifies amount of lottery moneys to be
deposited in subaccount. - }
  Requires State Parks and Recreation Director to submit biennial
report to Joint Committee on Ways and Means on results of
activities and programs funded by lottery moneys.
  Alters content of program conducted by Oregon Watershed
Enhancement Board.
  Changes name of Restoration and Protection Subaccount of Parks
and Natural Resources Fund to Natural Resources Subaccount.
  { - Changes name of Watershed Improvement Grant Fund to
Watershed Conservation Grant Fund. Changes name of Watershed
Improvement Operating Fund to Watershed Conservation Operating
Fund. - }
   { +  Abolishes Restoration and Protection Research Fund.
  Establishes Watershed Conservation Operating Fund and Watershed
Conservation Grant Fund and specifies uses of moneys in funds.
Abolishes Watershed Improvement Operating Fund on July 1, 2013,
and Watershed Improvement Grant Fund on July 1, 2015.  Transfers
unexpended moneys in abolished funds to newly established
funds. + }
  Requires state agencies receiving moneys from Natural Resources
Subaccount to biennially report to Legislative Assembly regarding
use of moneys.
  Declares emergency, effective July 1, 2011.

                        A BILL FOR AN ACT
Relating to the use of Parks and Natural Resources Fund moneys;
  creating new provisions; amending ORS 390.134, 390.180,
  541.351, 541.360, 541.370, 541.371, 541.373, 541.375, 541.376,
  541.377, 541.379, 541.392, 541.397, 541.401 and 805.256;
  repealing ORS 541.378, 541.379, 541.397 and 541.399;
  appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:

                               { +
PARKS AND NATURAL RESOURCES FUND + }

  SECTION 1. ORS 541.377 is amended to read:
  541.377. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Parks and
Natural Resources Fund to be administered by the Oregon
Department of Administrative Services. All moneys transferred
from the State Lottery Fund and all other moneys authorized to be
transferred to the Parks and Natural Resources Fund from whatever
source are appropriated continuously for the public purposes of
restoring and protecting Oregon's parks, beaches, watersheds and
 { - critical - }  { +  native + } fish and wildlife habitats.
Fifteen percent of the net proceeds from the Oregon State Lottery
shall be deposited in the Parks and Natural Resources Fund
created under this subsection.
    { - (2) Of the moneys deposited into the Parks and Natural
Resources Fund from the Oregon State Lottery, 50 percent shall be
deposited into a Parks Subaccount for the public purpose of
financing the protection, repair, operation, creation and
development of state parks, ocean shores, public beach access
areas, historic sites and recreation areas. The State Treasurer
may invest and reinvest the moneys in the Parks Subaccount as
provided in ORS 293.701 to 293.820. Interest from the moneys
deposited in the subaccount and earnings from investment of the
moneys in the subaccount shall be credited to the subaccount. - }

    { - (3) All moneys in the Parks Subaccount for financing the
protection, repair, operation, creation and development of state
parks, ocean shores, public beach access areas, historic sites
and recreation areas shall be allocated to the State Parks and
Recreation Department. Such moneys shall be deposited into the
State Parks and Recreation Department Fund established under ORS
390.134 and shall be used for the following purposes: - }
    { - (a) Maintaining, constructing, improving, developing,
managing and operating state park and recreation facilities,
programs and areas. - }
    { - (b) Acquiring real property, or interest therein, deemed
necessary for the creation and operation of state parks, ocean
shores, public beach access areas, recreation areas and historic
sites or because of natural, scenic, cultural, historic and
recreational values. - }
    { - (c) Operating grant programs for local government
entities deemed necessary to accomplish the public purposes of
the Parks and Natural Resources Fund. - }
    { - (4) Of the moneys deposited into the Parks and Natural
Resources Fund from the Oregon State Lottery, 50 percent shall be
deposited into a Restoration and Protection Subaccount for the
public purpose of financing the restoration and protection of
native salmonid populations, watersheds, fish and wildlife
habitats and water quality in Oregon. The State Treasurer may
invest and reinvest the moneys in the Restoration and Protection
Subaccount as provided in ORS 293.701 to 293.820. Interest from
the moneys deposited in the subaccount and earnings from
investment of the moneys in the subaccount shall be credited to
the Restoration and Protection Research Fund created under ORS
541.378. - }
    { - (5) The moneys in the Restoration and Protection
Subaccount for financing the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and
water quality shall be administered by the Oregon Watershed
Enhancement Board and shall be used for all of the following
purposes: - }
    { - (a) Restoration and protection of watersheds and fish,
wildlife, riparian and native species and for habitat
conservation activities, including but not limited to planning,
coordination, assessment, implementation, restoration, inventory,
information management and monitoring activities. - }
    { - (b) Watershed and riparian education efforts. - }
    { - (c) Development and implementation of watershed and water
quality enhancement plans. - }
    { - (d) Entering into agreements to obtain from willing
owners determinate interests in lands and waters that protect
watershed resources, including but not limited to fee simple
interests in land, leases of land or water or conservation
easements. - }
    { - (e) Enforcement of fish and wildlife and habitat
protection laws and regulations. - }
    { - (6) Of the moneys deposited into the Restoration and
Protection Subaccount from the Oregon State Lottery, the Oregon
Watershed Enhancement Board shall deposit: - }
    { - (a) Sixty-five percent of the funds into the Watershed
Improvement Grant Fund established under ORS 541.397 to be used
only for funding capital expenditure projects; and - }
    { - (b) Thirty-five percent of the funds into the Watershed
Improvement Operating Fund established under ORS 541.379 to be
used for the purposes set forth in ORS 541.379 (1). - }
    { - (7) - }  { +  (2) + } The Legislative Assembly
 { - shall - }  { +  may + } not limit expenditures from the
Parks and Natural Resources Fund. The Legislative Assembly may
appropriate other moneys or revenues to the Parks and Natural
Resources Fund.

                               { +
PARKS SUBACCOUNT + }

  SECTION 2.  { + Section 3 of this 2011 Act is added to and made
a part of ORS chapter 390. + }
  SECTION 3.  { + (1) Of the moneys deposited into the Parks and
Natural Resources Fund created under ORS 541.377 from the Oregon
State Lottery, 50 percent shall be deposited into a Parks
Subaccount. The State Treasurer may invest and reinvest the
moneys in the Parks Subaccount as provided in ORS 293.701 to
293.820.  Interest from the moneys deposited in the Parks
Subaccount and earnings from investment of the moneys in the
subaccount shall be credited to the subaccount.
  (2) Moneys deposited from the Oregon State Lottery to the Parks
Subaccount may be used only for:
  (a) Maintaining, constructing, improving, developing, managing
and operating state parks, ocean shores, public beach access
areas, historic sites, natural areas and outdoor and recreation
areas;
  (b) Acquiring real property, or interests in real property,
that has significant natural, scenic, cultural, historic or
recreational value for the creation or operation of state parks,
ocean shores, public beach access areas, outdoor recreation areas
and historic sites; and
  (c) Providing grants to regional or local government entities
to acquire property for public parks, natural areas or outdoor
recreation areas or to develop or improve public parks, natural
areas or outdoor recreation areas.
  (3) All moneys in the Parks Subaccount shall be transferred to
the State Parks and Recreation Department Fund and used to carry
out the purposes described in subsection (2) of this section by
achieving each of the following:
  (a) Providing additional public parks, natural areas or outdoor
recreation areas to meet the needs of current and future
residents of this state.
  (b) Protecting natural, cultural, historic and outdoor
recreational resources of statewide or regional significance.
  (c) Managing public parks, natural areas and outdoor recreation
areas to ensure the long-term ecological health of those parks
and areas and to provide for the enjoyment of those parks and
areas by current and future residents of this state.
  (d) Providing diverse and equitable opportunities for residents
of this state to experience nature and to participate in outdoor
recreational activities in state, regional, local or neighborhood
public parks and recreation areas. + }

                               { +
STATE PARKS AND RECREATION DEPARTMENT FUND + }

  SECTION 4. ORS 390.134 is amended to read:
  390.134. (1) As used in this section:
  (a) 'Camper' has the meaning given that term in ORS 801.180.
  (b) 'County' includes a metropolitan service district organized
under ORS chapter 268, but only to the extent that the district
has acquired, through title transfer, and is operating a park or
recreation site of a county pursuant to an intergovernmental
agreement.
  (c) 'Motor home' has the meaning given that term in ORS
801.350.
  (d) 'Travel trailer' has the meaning given that term in ORS
801.565.
  (2) The State Parks and Recreation Department Fund is
established separate and distinct from the General Fund. Moneys
in the fund are continuously appropriated to the State Parks and
Recreation Department for the purposes provided by law. The fund
shall consist of the following:
  (a) All moneys placed in the fund as provided by law. Any
interest or other income derived from the depositing or other
investing of the fund must be credited to the fund.
  (b) All registration fees received by the Department of
Transportation for campers, motor homes and travel trailers that
are transferred to the fund under ORS 366.512. The funds must be
deposited in a separate subaccount established under subsection
(3) of this section.
  (c) Revenue from fees and charges pursuant to ORS 390.124.
  (3) Any moneys placed in the fund for a particular purpose may
be placed in a separate subaccount within the fund. Each separate
subaccount established under this subsection must be separately
accounted for. Moneys placed in a subaccount must be used for the
purposes for which they are deposited.
  (4) All of the moneys in the fund except those moneys described
in subsection (3), (5), (6) { + , + }   { - or - }  (7) { + , (8)
or  + }  { +  (9) + } of this section must be deposited in a
separate subaccount within the fund and used by the State Parks
and Recreation Department for the acquisition, development,
maintenance, care and use of park and recreation sites and for
the maintenance and operation of the Oregon State Fair. The
moneys in the subaccount under this subsection must be accounted
for separately and stated separately in the State Parks and
Recreation Department's biennial budget.
  (5)(a) Thirty-five percent of the amount transferred to the
State Parks and Recreation Department under ORS 366.512 from the
registration of travel trailers, campers and motor homes and
under ORS 803.601 from recreational vehicle trip permits must be
deposited in a separate subaccount within the fund to be
distributed for the acquisition, development, maintenance, care
and use of county park and recreation sites. The moneys in the
subaccount under this paragraph must be accounted for separately.
The following apply to the distribution of moneys under this
paragraph:
  (A) The moneys must be distributed among the several counties
for the purposes described in this paragraph. The distribution
shall be made at times determined by the State Parks and
Recreation Department but must be made not less than once a year.
  (B) The sums designated under this paragraph must be remitted
to the county treasurers of the several counties by warrant.
  (b) The department shall establish an advisory committee to
advise the department in the performance of its duties under this
subsection. The composition of the advisory committee under this
subsection is as determined by the department by rule. In
determining the composition of the advisory committee, the
department shall attempt to provide reasonable representation for
county officials or employees with responsibilities relating to
county parks and recreation sites.
  (c) The department, by rule, shall establish a program to
provide moneys to counties for the acquisition, development,
maintenance, care and use of county park and recreation sites.
The rules under this paragraph shall provide for distribution of
moneys based on use and need and, as the department determines
necessary, on the need for the development and maintenance of
facilities to provide camping sites for campers, motor homes and
travel trailers.
  (6) The department shall create a separate City and County
Subaccount within the fund to be used to reimburse cities and
counties as provided in ORS 390.290.
  (7) The department shall create a separate rural Fire
Protection District Subaccount to be used to provide funds for
the fire protection districts as provided in ORS 390.290.
   { +  (8) Twelve percent of the amount transferred to the State
Parks and Recreation Department Fund from the Parks Subaccount
shall be used only to carry out the purposes and achievements
described in section 3 (2) and (3) of this 2011 Act through the
awarding of grants to regional or local government entities to
acquire property for public parks, natural areas or outdoor
recreation areas or to develop or improve public parks, natural
areas or outdoor recreation areas. Moneys described in this
subsection may not be used to pay the cost of administering
grants or the cost of any Secretary of State audit required under
section 4c, Article XV of the Oregon Constitution.
  (9) If the amount transferred to the State Parks and Recreation
Department Fund from the Parks Subaccount during a biennium is
more than 150 percent of the amount that was transferred during
the 2009-2011 biennium, the State Treasurer shall, during the
next following biennium, deposit for use as described in
subsection (8) of this section the amount required under
subsection (8) of this section plus an amount equal to the
difference between the amount deposited for use as described in
subsection (8) of this section during the preceding biennium and
25 percent of the moneys transferred to the State Parks and
Recreation Department Fund from the Parks Subaccount during the
preceding biennium.
  (10) Subsections (8) and (9) of this section apply only for
biennia in which the Legislative Assembly does not require a
greater percentage of the amount transferred to the State Parks
and Recreation Department Fund from the Parks Subaccount to be
used for the purposes described in subsection (8) of this
section.  The Legislative Assembly may not authorize the
percentage of the amount transferred to the State Parks and
Recreation Department Fund from the Parks Subaccount that is
deposited for use as described in subsection (8) of this section
in a biennium to be less than the percentage required to be
deposited under subsections (8) and (9) of this section. + }
    { - (8) - }  { +  (11) + } On or before January 15 of each
odd-numbered year, the State Parks and Recreation Director shall
report to the Joint Committee on Ways and Means created by ORS
171.555 on the use of moneys deposited pursuant to ORS 805.256 in
the fund.   { +  Notwithstanding ORS 192.230 to 192.250, + } the
director shall make the report in a form and manner as the
committee may prescribe.
   { +  (12) On or before January 15 of each odd-numbered year,
the director shall submit a report to the Joint Committee on Ways
and Means created by ORS 171.555 that describes the measurable
biennial and cumulative results of activities and programs
financed by moneys transferred to the State Parks and Recreation
Department Fund from the Parks Subaccount. Notwithstanding ORS
192.230 to 192.250, the director shall make the report in a form
and manner as the committee may prescribe. + }
  SECTION 5. ORS 390.134, as amended by section 2, chapter 792,
Oregon Laws 2007, and section 47, chapter 11, Oregon Laws 2009,
is amended to read:
  390.134. (1) As used in this section:
  (a) 'Camper' has the meaning given that term in ORS 801.180.
  (b) 'County' includes a metropolitan service district organized
under ORS chapter 268, but only to the extent that the district
has acquired, through title transfer, and is operating a park or
recreation site of a county pursuant to an intergovernmental
agreement.
  (c) 'Motor home' has the meaning given that term in ORS
801.350.
  (d) 'Travel trailer' has the meaning given that term in ORS
801.565.
  (2) The State Parks and Recreation Department Fund is
established separate and distinct from the General Fund. Moneys
in the fund are continuously appropriated to the State Parks and
Recreation Department for the purposes provided by law. The fund
shall consist of the following:
  (a) All moneys placed in the fund as provided by law. Any
interest or other income derived from the depositing or other
investing of the fund must be credited to the fund.
  (b) All registration fees received by the Department of
Transportation for campers, motor homes and travel trailers that
are transferred to the fund under ORS 366.512. The funds must be
deposited in a separate subaccount established under subsection
(3) of this section.
  (c) Revenue from fees and charges pursuant to ORS 390.124.
  (3) Any moneys placed in the fund for a particular purpose may
be placed in a separate subaccount within the fund. Each separate
subaccount established under this subsection must be separately
accounted for. Moneys placed in a subaccount must be used for the
purposes for which they are deposited.
  (4) All of the moneys in the fund except those moneys described
in subsection (3), (5), (6) { + , + }   { - or - }  (7) { + , (8)
or (9) + } of this section must be deposited in a separate
subaccount within the fund and used by the State Parks and
Recreation Department for the acquisition, development,
maintenance, care and use of park and recreation sites and for
the maintenance and operation of the Oregon State Fair. The
moneys in the subaccount under this subsection must be accounted
for separately and stated separately in the State Parks and
Recreation Department's biennial budget.
  (5)(a) Thirty percent of the amount transferred to the State
Parks and Recreation Department under ORS 366.512 from the
registration of travel trailers, campers and motor homes and
under ORS 803.601 from recreational vehicle trip permits must be
deposited in a separate subaccount within the fund to be
distributed for the acquisition, development, maintenance, care
and use of county park and recreation sites. The moneys in the
subaccount under this paragraph must be accounted for separately.
The following apply to the distribution of moneys under this
paragraph:
  (A) The moneys must be distributed among the several counties
for the purposes described in this paragraph. The distribution
shall be made at times determined by the State Parks and
Recreation Department but must be made not less than once a year.
  (B) The sums designated under this paragraph must be remitted
to the county treasurers of the several counties by warrant.
  (b) The department shall establish an advisory committee to
advise the department in the performance of its duties under this
subsection. The composition of the advisory committee under this
subsection is as determined by the department by rule. In
determining the composition of the advisory committee, the
department shall attempt to provide reasonable representation for
county officials or employees with responsibilities relating to
county parks and recreation sites.
  (c) The department, by rule, shall establish a program to
provide moneys to counties for the acquisition, development,
maintenance, care and use of county park and recreation sites.
The rules under this paragraph shall provide for distribution of
moneys based on use and need and, as the department determines
necessary, on the need for the development and maintenance of
facilities to provide camping sites for campers, motor homes and
travel trailers.
  (6) The department shall create a separate City and County
Subaccount within the fund to be used to reimburse cities and
counties as provided in ORS 390.290.
  (7) The department shall create a separate rural Fire
Protection District Subaccount to be used to provide funds for
the fire protection districts as provided in ORS 390.290.
   { +  (8) Twelve percent of the amount transferred to the State
Parks and Recreation Department Fund from the Parks Subaccount
shall be used only to carry out the purposes and achievements
described in section 3 (2) and (3) of this 2011 Act through the
awarding of grants to regional or local government entities to
acquire property for public parks, natural areas or outdoor
recreation areas or to develop or improve public parks, natural
areas or outdoor recreation areas. Moneys described in this
subsection may not be used to pay the cost of administering
grants or the cost of any Secretary of State audit required under
section 4c, Article XV of the Oregon Constitution.
  (9) If the amount transferred to the State Parks and Recreation
Department Fund from the Parks Subaccount during a biennium is
more than 150 percent of the amount that was transferred during
the 2009-2011 biennium, the State Treasurer shall, during the
next following biennium, deposit for use as described in
subsection (8) of this section the amount required under
subsection (8) of this section plus an amount equal to the
difference between the amount deposited for use as described in
subsection (8) of this section during the preceding biennium and
25 percent of the moneys transferred to the State Parks and
Recreation Department Fund from the Parks Subaccount during the
preceding biennium.
  (10) Subsections (8) and (9) of this section apply only for
biennia in which the Legislative Assembly does not require a
greater percentage of the amount transferred to the State Parks
and Recreation Department Fund from the Parks Subaccount to be
used for the purposes described in subsection (8) of this
section.  The Legislative Assembly may not authorize the
percentage of the amount transferred to the State Parks and
Recreation Department Fund from the Parks Subaccount that is
deposited for use as described in subsection (8) of this section
in a biennium to be less than the percentage required to be
deposited under subsections (8) and (9) of this section. + }
    { - (8) - }  { +  (11) + } On or before January 15 of each
odd-numbered year, the State Parks and Recreation Director shall
report to the Joint Committee on Ways and Means created by ORS
171.555 on the use of moneys deposited pursuant to ORS 805.256 in
the fund.   { +  Notwithstanding ORS 192.230 to 192.250, + } the
director shall make the report in a form and manner as the
committee may prescribe.
   { +  (12) On or before January 15 of each odd-numbered year,
the director shall submit a report to the Joint Committee on Ways
and Means created by ORS 171.555 that describes the measurable
biennial and cumulative results of activities and programs
financed by moneys transferred to the State Parks and Recreation
Department Fund from the Parks Subaccount. Notwithstanding ORS
192.230 to 192.250, the director shall make the report in a form
and manner as the committee may prescribe. + }
  SECTION 6. ORS 390.180 is amended to read:
  390.180. (1) The State Parks and Recreation Director shall
adopt rules that:
  (a) Establish the standards the State Parks and Recreation
Department shall use when that department:
  (A) Performs comprehensive statewide recreational planning; or
  (B) Disburses any moneys to  { + regional or + } local
governments or other state agencies under programs established
under state or federal law.
  (b) Establish a process for the development of a master plan
for each state park, including public participation and
coordination with affected local governments.
  (c) Establish a master plan for each state park, including an
assessment of resources and a determination of the capacity for
public use and enjoyment of each park, that the State Parks and
Recreation Department shall follow in its development and use of
each park.
  (d) Make state funding assistance available to  { + regional or
local governments that demonstrate cooperation with + } nonprofit
veterans' organizations for the construction and restoration of
memorials honoring veterans and war memorials located on public
property.
  (2) The State Parks and Recreation Director shall submit an
adopted state park master plan to the local government with land
use planning responsibility for the subject park.

                               { +
NATURAL RESOURCES DEFINITIONS + }

  SECTION 7. ORS 541.351 is amended to read:
  541.351. As used in ORS 541.351 to 541.415:
  (1) 'Adaptive management' means applying management or
practices over time and across the landscape to achieve site
specific resource goals using an integrated and science based
approach that results in changes over time in response to
feedback or monitoring.
  (2) 'Associated uplands' includes those lands of a watershed
that are critical to the functioning and protection of a riparian
area.
  (3) 'Board' means the Oregon Watershed Enhancement Board
created under ORS 541.360.
    { - (4) 'Capital expenditures' means direct expenses related
to: - }
    { - (a) Personal property of a nonexpendable nature including
items that are not consumed in the normal course of operations,
can normally be used more than once, have a useful life of more
than two years and are for use in the enforcement of fish and
wildlife and habitat protection laws and regulations; or - }
    { - (b) Projects that restore, enhance or protect fish and
wildlife habitat, watershed functions, native salmonid
populations or water quality, including but not limited to: - }
    { - (A) Expenses of assessment, research, design or other
technical requirements for the implementation of a project; - }
    { - (B) The acquisition of determinate interests, including
fee and less than fee interests, in land or water in order to
protect watershed resources, including appraisal costs and other
costs directly related to such acquisitions; - }
    { - (C) Development, construction or implementation of a
project to restore, enhance or protect water quality, a
watershed, fish or wildlife, or riparian or other habitat; - }
    { - (D) Technical support directly related to the
implementation of a project; and - }
    { - (E) Monitoring or evaluation activities necessary to
determine the actual effectiveness of a project. - }
    { - (5) - }  { +  (4) + } 'Independent Multidisciplinary
Science Team ' means the scientific team of recognized experts in
fisheries, artificial propagation, stream ecology, forestry,
range, watershed and agricultural management created under ORS
541.409.
    { - (6) - }  { +  (5) + } 'Native' means indigenous to Oregon
and not introduced.
   { +  (6) 'Oregon Conservation Strategy' means the
comprehensive wildlife conservation strategy for this state
adopted by the State Fish and Wildlife Commission. + }
  (7) 'Oregon Plan' means the guidance statement and framework
described in ORS 541.405.
  (8) 'Protect' or 'protection' means to minimize or mitigate
adverse effects on   { - salmonid and - }  { +  native fish or
wildlife + } habitat to the maximum extent practicable given the
anticipated duration, geographic scope and primary purpose of
proposed activities.
  (9) 'Restore' or 'restoration' means to take actions likely to
achieve sustainable population levels of native fish or wildlife
and their habitats.
  (10) 'Riparian area' means a zone of transition from an aquatic
ecosystem to a terrestrial ecosystem, dependent upon surface or
subsurface water, that reveals through the zone's existing or
potential soil-vegetation complex the influence of such surface
or subsurface water. A riparian area may be located adjacent to a
lake, reservoir, estuary, pothole, spring, bog, wet meadow,
muskeg or ephemeral, intermittent or perennial stream.
  (11) 'Soil and water conservation district' means a political
subdivision of the state as described in ORS 568.550.
  (12) 'Stewardship' means the careful and responsible management
of the environment.
  (13) 'Tribe' means a federally recognized Indian tribe in
Oregon.
  (14) 'Watershed' means the entire land area drained by a stream
or system of connected streams such that all streamflow
originating in the area is discharged through a single outlet.
  (15) 'Watershed council' means a voluntary local organization,
designated by a local government group convened by a county
governing body, to address the goal of sustaining natural
resource and watershed protection, restoration and enhancement
within a watershed.

                               { +
NATURAL RESOURCES SUBACCOUNT + }

  SECTION 8.  { + Sections 9 and 10 of this 2011 Act are added to
and made a part of ORS 541.351 to 541.415. + }
  SECTION 9. { +  (1) Of the moneys deposited into the Parks and
Natural Resources Fund created under ORS 541.377 from the Oregon
State Lottery, 50 percent shall be deposited into a Natural
Resources Subaccount for the public purpose of financing the
restoration and protection of native fish and wildlife,
watersheds and water quality in Oregon. The State Treasurer may
invest and reinvest the moneys in the Natural Resources
Subaccount as provided in ORS 293.701 to 293.820.
  (2) Moneys in the Natural Resources Subaccount shall be used to
accomplish each of the following:
  (a) Protecting and improving water quality in the rivers, lakes
and streams of this state by restoring natural watershed
functions or stream flows;
  (b) Securing long-term protection for lands and waters that
provide significant habitats for native fish and wildlife;
  (c) Restoring and maintaining habitat needed to sustain healthy
and resilient populations of native fish and wildlife;
  (d) Maintaining the diversity of plants, animals and ecosystems
in this state;
  (e) Involving people in voluntary actions to protect, restore
and maintain the ecological health of lands and waters in this
state; and
  (f) Remedying the conditions that limit the health of fish and
wildlife, fish and wildlife habitats and watershed functions that
are in the greatest need of conservation.
  (3) Except as provided in subsections (4) and (5) of this
section, of the moneys deposited into the Natural Resources
Subaccount from the Oregon State Lottery:
  (a) Sixty-five percent of the moneys shall be deposited into
the Watershed Conservation Grant Fund established under section
12 of this 2011 Act to be used by the Oregon Watershed
Enhancement Board for the purposes set forth in section 13 of
this 2011 Act; and
  (b) Thirty-five percent of the moneys shall be deposited into
the Watershed Conservation Operating Fund established under
section 16 of this 2011 Act.
  (4) If the amount transferred from the Oregon State Lottery to
the Parks and Natural Resources Fund during a biennium is more
than 150 percent of the amount that was transferred during the
2009-2011 biennium, except as provided in subsection (5) of this
section, the State Treasurer shall, during the next following
biennium, deposit from the Natural Resources Subaccount to the
Watershed Conservation Grant Fund the amount described in
subsection (3)(a) of this section plus an amount equal to the
difference between the amount deposited from the subaccount to
the Watershed Conservation Grant Fund during the preceding
biennium and 70 percent of the moneys received by the subaccount
from the Oregon State Lottery during the preceding biennium.
  (5) The requirements in subsections (3) and (4) of this section
apply only for biennia in which the Legislative Assembly does not
require a greater percentage of the Natural Resources Subaccount
moneys to be deposited into the Watershed Conservation Grant
Fund. The Legislative Assembly may not authorize the percentage
of Natural Resources Subaccount moneys deposited into the
Watershed Conservation Grant Fund in a biennium to be less than
the percentage required to be deposited under subsections (3) and
(4) of this section. + }
  SECTION 10.  { + Each state agency that receives moneys from
the Natural Resources Subaccount created under section 9 of this
2011 Act shall submit a report to the Legislative Assembly each
biennium regarding the use of the moneys by the agency. The
report shall include, but need not be limited to, a description
of the measurable biennial and cumulative results of the
activities and programs for which the agency expended the moneys.
Reports required by this section are in addition to any audit
report supplied by the Secretary of State under ORS chapter
297. + }

                               { +
WATERSHED CONSERVATION GRANT FUND + }

  SECTION 11.  { + Sections 12 and 13 of this 2011 Act are added
to and made a part of ORS 541.351 to 541.415. + }

  SECTION 12.  { + (1) The Watershed Conservation Grant Fund is
established separate and distinct from the General Fund. The
Watershed Conservation Grant Fund shall consist of all moneys
placed in the fund as provided by law. All moneys in the
Watershed Conservation Grant Fund are continuously appropriated
to the Oregon Watershed Enhancement Board for grants to fund
projects described in ORS 541.401 that use grant moneys as
provided under section 13 of this 2011 Act. Interest accruing to
the Watershed Conservation Grant Fund shall be credited to the
fund. Watershed Conservation Grant Fund moneys appropriated and
not expended by the completion of a biennium shall remain in the
Watershed Conservation Grant Fund.
  (2) The board also may accept gifts and grants from any public
or private source for the purpose of providing the grants
described in this section. + }
  SECTION 13.  { + The purpose of the Watershed Conservation
Grant Fund is to provide funding for grants to achieve the
purposes and uses described in section 9 of this 2011 Act and to
implement the mission of the Oregon Plan, including but not
limited to grants to further the Oregon Conservation Strategy and
the watershed health and native fish recovery programs of this
state. Moneys appropriated to the fund shall be used only for the
following activities:
  (1) Acquiring from willing owners interests in land or water
that will protect or restore native fish or wildlife habitats.
The interests may include, but need not be limited to, fee
interests, conservation easements or leases.
  (2) Projects to protect or restore native fish habitat or
wildlife habitat.
  (3) Projects to protect or restore natural watershed or
ecosystem functions in order to improve water quality or stream
flows.
  (4) Resource assessment, planning, design and engineering,
technical assistance, monitoring and outreach activities
necessary for carrying out subsections (1) to (3) of this
section. + }
  SECTION 14. ORS 541.401 is amended to read:
  541.401. The Oregon Watershed Enhancement Board may award funds
from the Watershed   { - Improvement - }  { +  Conservation + }
Grant Fund only for   { - the purposes listed in ORS 541.399 - }
 { +  activities described in section 13 of this 2011 Act + }.
Any project that the board approves for funding shall comply with
the following criteria:
  (1) There is a matching contribution from other program funds,
in-kind services or other investment in the project;
  (2) The project to be funded is reviewed and approved by a
technical committee  { + established + } in accordance with ORS
541.370
  { - (3) - } ; and
  (3) The project provides a public benefit   { - through - }
 { + by supporting + } improved:
  (a) Water quality;
  (b)  { + Native + } fish or wildlife habitat; or
  (c)   { - Public information or education on a - }
Watershed { +  or ecosystem + } function.
  SECTION 15.  { + ORS 541.399 is repealed. + }

                               { +
WATERSHED CONSERVATION OPERATING FUND + }

  SECTION 16.  { + (1) The Watershed Conservation Operating Fund
is established in the State Treasury separate and distinct from
the General Fund. The Watershed Conservation Operating Fund shall
consist of all moneys placed in the fund as provided by law. The
purpose of the fund is to carry out activities that support all
of the purposes described in section 9 of this 2011 Act. Moneys
in the Watershed Conservation Operating Fund shall be used for
each of the following:
  (a) To develop, implement or update state conservation
strategies or plans to protect or restore native fish or wildlife
habitats or to protect or restore natural watershed or ecosystem
functions to improve water quality or stream flows;
  (b) To develop, implement or update regional or local
strategies or plans that are consistent with state strategies or
plans described in paragraph (a) of this subsection;
  (c) To develop, implement or update state strategies or plans
to prevent, detect, control or eradicate invasive species that
threaten native fish or wildlife habitats or that impair water
quality;
  (d) To support local delivery, including but not limited to
delivery by watershed councils, soil and water conservation
districts and other community-based organizations, of watershed
education activities and other programs or projects that protect
or restore native fish or wildlife habitats, watersheds or
ecosystems;
  (e) To pay the Oregon Watershed Enhancement Board costs of
administering the Watershed Conservation Grant Fund;
  (f) To enforce fish and wildlife laws and regulations and fish
and wildlife habitat protection laws and regulations; and
  (g) To reimburse the Secretary of State as described in ORS
297.230 for the costs of audits performed by the Secretary of
State under section 4c, Article XV of the Oregon Constitution.
  (2) Interest accruing to the Watershed Conservation Operating
Fund shall be credited to the fund. Watershed Conservation
Operating Fund moneys appropriated and not expended by the
completion of a biennium shall remain in the Watershed
Conservation Operating Fund.
  (3) Any public or private source may make gifts or grants to
the Watershed Conservation Operating Fund. + }
  SECTION 17. ORS 541.373 is amended to read:
  541.373. (1) The Governor may receive gifts, grants, bequests,
endowments and donations of moneys from public and private
sources, including the federal government, for the purpose of
implementing the Oregon Plan, as described in ORS 541.405 { + ,
and the Oregon Conservation Strategy + }.
  (2)  { + If requested by the source, the Governor shall deposit
moneys received under this section into the Watershed
Conservation Grant Fund for use as provided under section 13 of
this 2011 Act. + } The Governor shall deposit  { + all other + }
moneys received under this section in the State Treasury to the
credit of the Watershed
  { - Improvement - }  { +  Conservation + } Operating Fund
established under   { - ORS 541.379 to be used for the purposes
specified in ORS 541.379 (1)(b) - }  { +  section 16 of this 2011
Act + }.
  SECTION 18. ORS 541.371 is amended to read:
  541.371. (1) In addition to the duties set forth in ORS
541.370, in carrying out the provisions of ORS 541.351 to
541.415, the Oregon Watershed Enhancement Board:
  (a) Shall establish a framework for a locally based integrated
watershed planning and management process designed to assist
watershed councils { + , + }   { - and - }  soil and water
conservation districts  { + and other partners + } and to support
the efforts of watershed councils { + , + }   { - and - }  soil
and water conservation districts  { +  and other partners + } to
work within the requirements of state and federal laws without
duplication of planning effort. The framework shall include all
of the following:
  (A) Guidance and protocols for watershed assessments to
encourage consistent assessment methods across all watersheds and
agencies, including assessment of cumulative effects. At a

minimum, such guidance shall address the following plan
components:
  (i) A description of the watershed;
  (ii) An assessment of current watershed conditions and the
distribution and condition of habitat; and
  (iii) Identification of conditions preventing watershed
restoration.
  (B) Guidance on how to prepare watershed action plans. At a
minimum, such guidance shall address the following plan
components:
  (i) Applicable water quality standards and native salmonid and
habitat recovery objectives;
  (ii) Proposed measures needed to restore watershed health;
  (iii) Timeline and budget estimates for implementation of
action measures in priority order; and
  (iv) Monitoring and evaluation systems.
  (b) May review plans, actions and rules of state agencies
pertaining to restoration and protection grants for the purpose
of coordinating the board's grant program with other ongoing
grant programs.
  (c) Shall establish statewide and regional goals and priorities
that shall become the basis for funding decisions by the board.
In adopting such goals and priorities, the board shall adopt
priorities for grant funding based on the Oregon Plan { + , the
Oregon Conservation Strategy, the watershed health and native
fish recovery programs of this state  + }and   { - on - }
measurable goals. In carrying out this function, the board shall
consider local economic and social impacts among the criteria.
  (d) Shall support development and implementation of a system
that enables standardized collection, management and reporting of
natural resources information in Oregon, including water data,
geographic information system data and information on native fish
and wildlife and habitat.
  (e) Shall promote the availability of information on the
effects of watershed enhancement.
  (f) May not have regulatory or enforcement authority except for
the fiscal responsibilities described in ORS 541.351 to 541.415.
  (2) In addition to   { - the uses of grant funds described in
ORS 541.399, in allocating grant funds under ORS 541.351 to
541.415 that are derived from the Restoration and Protection
Subaccount, the board: - }  { +  any other expenditures
consistent with section 16 of this 2011 Act, moneys in the
Watershed Conservation Operating Fund may be expended in the form
of grants or allocations: + }
  (a)   { - May allocate funds to be used for staff for - }
 { + To + } soil and water conservation districts and watershed
councils  { - . - }  { +  for costs of employing staff to further
the development and implementation of activities, projects and
programs for the purposes described in section 16 of this 2011
Act; or + }
  (b)   { - May award funds - }  For a specific project or
program application or for implementation of an approved action
plan.
  (3) To the maximum extent practicable, soil and water
conservation districts and watershed councils shall share
technical staff.
  SECTION 19. ORS 805.256 is amended to read:
  805.256. (1) After deduction of the cost of administration of
the salmon registration plate program, moneys from the surcharge
imposed by ORS 805.255 shall be transferred and appropriated as
follows:
  (a) Half of the moneys shall be transferred to the   { - Oregon
Watershed Enhancement Board established under ORS 541.360 and are
continuously appropriated to the board - }  { +  Watershed
Conservation Operating Fund + } for activities under   { - ORS
541.379 - }  { +  section 16 of this 2011 Act + } related to the
restoration and protection of   { - native salmonid populations,
watersheds, fish and wildlife habitats and water quality,
including but not limited to activities under the Oregon Plan - }
 { + watersheds, native fish and wildlife and water quality + };
and
  (b) Half of the moneys shall be transferred to the State Parks
and Recreation Department Fund established under ORS 390.134 and
continuously appropriated for the purposes described in ORS
390.134 (4).
  (2) As used in this section, 'the cost of administration of the
salmon registration plate program' is the sum of all Department
of Transportation expenses for the issuance or transfer of salmon
registration plates under ORS 805.255 that are above the normal
costs of issuing, renewing and transferring registration plates
in the normal course of the business of the department.  These
expenses include, but are not limited to, the costs of collecting
the salmon registration plate surcharge and transferring salmon
registration plates.

                               { +
OREGON WATERSHED ENHANCEMENT BOARD + }

  SECTION 20. ORS 541.360 is amended to read:
  541.360. (1) The Oregon Watershed Enhancement Board is created.
The board shall consist of 17 members as set forth in subsection
(2) of this section. The chairperson shall have such powers and
duties as are provided by the rules of the board.
  (2)(a) The 11 voting members of the board shall be
knowledgeable about natural resource issues, represent all
geographic regions of this state and include at least one
representative of a tribe. The board shall consist of the
following:
  (A) Each of the following boards or commissions shall designate
one member of their board or commission to serve on the Oregon
Watershed Enhancement Board:
  (i) The Environmental Quality Commission;
  (ii) The State Fish and Wildlife Commission;
  (iii) The State Board of Forestry;
  (iv) The State Board of Agriculture; and
  (v) The Water Resources Commission; and
  (B) Six public members appointed by the Governor and confirmed
by the Senate in accordance with ORS 171.562 and 171.565. Each
public member shall serve for a term of four years.  A member
shall be eligible for reappointment, but no member shall serve
more than two consecutive terms.
  (b) In addition to the voting members, the director of the
  { - agricultural extension service of - }  Oregon State
University  { +  Extension Service + }, or the director's
designee, shall serve as a nonvoting member of the board and
shall participate as needed in the activities of the board.
  (c) In addition to the voting and nonvoting members designated
in paragraphs (a) and (b) of this subsection, representatives of
the following federal agencies shall be invited to serve as
additional nonvoting members of the board:
  (A) A representative of the United States Forest Service.
  (B) A representative of the United States Bureau of Land
Management.
  (C) A representative of the Natural Resources Conservation
Service of the United States Department of Agriculture.
  (D) A representative of the United States Environmental
Protection Agency.
  (E) A representative of the National Marine Fisheries Service
of the United States Department of Commerce.
  (3) The voting members of the board shall select a chairperson
from among the voting members of the board.

  (4) At least eight voting members of the board must be present
to take action to award grant funds under ORS 541.370. If three
or more voting members object to an award of grant funds, the
board shall reject the proposal and direct the applicant to
revise the proposal to comply with the requirements of ORS
  { - 541.397, 541.399 and 451.401 - }  { +  541.401 and sections
12 and 13 of this 2011 Act + } and resubmit the proposal.
  SECTION 21. ORS 541.370 is amended to read:
  541.370. (1) In carrying out the watershed enhancement
program { +  described in ORS 541.365 + }, the Oregon Watershed
Enhancement Board shall:
  (a) Coordinate the board's funding of enhancement projects with
the activities of the Natural Resources Division staff and other
agencies, especially those agencies working together through a
system of coordinated resource management planning.
  (b) Use the expertise of the appropriate state agency according
to the type of enhancement project.
  (c) Provide educational and informational materials to promote
public awareness and involvement in the watershed enhancement
program.
  (d) Coordinate and provide for or arrange for assistance in the
activities of persons, agencies or political subdivisions
developing local watershed enhancement projects funded by the
board.
  (e) Grant funds for the support of watershed councils in
assessing watershed conditions, developing action plans,
implementing projects and monitoring results and for the
implementation of watershed enhancement projects from such moneys
as may be available to the board therefor.
  (f) Develop and maintain a centralized repository for
information about the effects of watershed enhancement and
education projects.
  (g) Give priority to proposed watershed enhancement projects
receiving funding or assistance from other sources.
  (h) Identify gaps in research or available information about
watershed health and enhancement.
  (i) Cooperate with appropriate federal entities to identify the
needs and interests of the State of Oregon so that federal plans
and project schedules relating to watershed enhancement
incorporate the state's intent to the fullest extent practicable.
  (j) Encourage the use of nonstructural methods to enhance the
riparian areas and associated uplands of Oregon's watersheds.
  (k) Determine criteria for utilizing the private sector, both
not-for-profit and for-profit organizations, to provide
landowners with technical assistance to help develop and
implement conservation easements and resource improvement
projects.
  (2) In accordance with ORS 541.351 to 541.415, the Oregon
Watershed Enhancement Board shall administer a watershed
  { - improvement - }  { +  conservation + } grant program using
funds from the Watershed   { - Improvement - }  { +
Conservation + } Grant Fund established under
  { - ORS 541.397 - }  { +  section 12 of this 2011 Act + }, from
the   { - Restoration and Protection - }  { +  Natural
Resources + } Subaccount established under
  { - ORS 541.377 - }  { +  section 9 of this 2011 Act + } and
from the Flexible Incentives Account established under ORS
541.381.
  (3) To aid and advise the board in the performance of the
functions of the board, the board may establish such advisory and
technical committees as the board considers necessary. These
committees may be continuing or temporary. The board shall
determine the representation, membership, terms and organization
of the committees and shall appoint their members. The
chairperson is ex officio a member of each committee.
  SECTION 22. ORS 541.375 is amended to read:
  541.375. (1) { + (a) + }   { - Any person, tribe, watershed
council, soil and water conservation district, community college,
state institution of higher education, independent not-for-profit
institution of higher education or political subdivision of this
state that is not a state agency - }  { +  The following
entities + } may submit a request for funding for { + , + } or
for advice and assistance in developing { + , + } a project under
ORS 541.351 to 541.415  { - . - }  { + :
  (A) A person;
  (B) An Indian tribe;
  (C) A watershed council;
  (D) A soil and water conservation district;
  (E) A community college;
  (F) A state institution of higher education;
  (G) An independent not-for-profit institution of higher
education; or
  (H) A political subdivision of this state that is not a state
agency.
  (b) + } A state agency or federal agency may apply for funding
under this section only as a coapplicant with   { - one of the
other eligible entities - }  { +  an entity described in
paragraph (a) of this subsection + }.
  (2) The request under subsection (1) of this section shall be
filed in the manner, be in the form and contain the information
required by the Oregon Watershed Enhancement Board { + ,
regardless of the anticipated funding source for the project + }.
  (3) The board may establish a grant program through soil and
water conservation districts organized under ORS 568.210 to
568.808 and 568.900 to 568.933 that provides funds for local
implementation of watershed enhancement, education and monitoring
efforts.
  (4) The board may fund implementation of action plans based on
a watershed assessment that addresses water quality and aquatic
resources of the watershed.
  (5) A project may use mechanical, vegetative or structural
methods including, but not limited to, management techniques,
erosion control, streambank stabilization, forest, range or crop
land treatment, site specific in-stream structures, acquisitions
or leases of land or water rights from a willing owner, watershed
assessments, landowner incentives and action plan development,
implementation and monitoring.
  (6) The actions of a soil and water conservation district
carried out pursuant to a grant program established by the board
under subsection (3) of this section shall not be subject to
review and approval by the Natural Resources Division under ORS
561.400.
  (7)   { - The Oregon Watershed Enhancement Board shall approve
for funding only those projects that: - }   { + If a project or a
portion of a project is not subject to the funding criteria
described in ORS 541.401 and applies to receive funding from the
board, the board may approve the project or portion of a project
for funding only if the project or portion of a project: + }
  (a)   { - Are - }  { +  Is + } based on sound principles of
 { + native fish or wildlife habitat conservation or + }
watershed management;
  (b)   { - Use - }  { +  Uses + } methods most adapted to the
project locale;
  (c)   { - Meet - }  { +  Meets + } the criteria established by
the board under ORS 541.396; and
  (d)   { - Contribute - }  { +  Contributes + } to either:
  (A) The improved health of a stream, lake or reservoir and
toward the achievement of standards that satisfy the requirements
of the Federal Water Pollution Control Act (P.L. 92-500), as
amended; or

  (B) The   { - restoration of wildlife, habitat or native
fish - }  { + conservation or restoration of habitat for, or of
watershed or ecosystem function for, native fish or wildlife + }.
  (8) The Oregon Watershed Enhancement Board may fund a project
for the restoration of a riparian area or associated upland that
is carried out in conjunction with a storage structure. However,
the board shall not approve funding for any proposed project that
consists solely of construction of a storage structure for
out-of-stream use.
  (9) The Oregon Watershed Enhancement Board may fund projects
involving the acquisition of lands and waters, or interests
therein from willing sellers, for the purpose of maintaining or
restoring watersheds  { - , habitat and native salmonids - }
 { +  and habitat for native fish or wildlife + }. Interests in
these lands and waters may be held by local, state and federal
agencies, tribes, not-for-profit land conservation organizations
and trusts, state institutions of higher education, independent
not-for-profit institutions of higher education or political
subdivisions of this state, as long as the entity continues to
use the land or water for the purposes specified under section
4b, Article XV of the Oregon Constitution.
  (10) If the Oregon Watershed Enhancement Board approves funding
for a project under this section  { -  that requires the
applicant to obtain a permit or license from a local, state or
federal agency or governing body - } , the board   { - shall - }
 { +  may + } not disburse   { - any - }  funds to the applicant
 { + for any part of the project that requires the applicant to
obtain a permit or license from a local, state or federal agency
or governing body + } until the applicant presents evidence that
the agency has granted the permit or license.
  SECTION 23. ORS 541.376 is amended to read:
  541.376. (1) Land purchased through a grant agreement with the
Oregon Watershed Enhancement Board shall be subject to title
restrictions that  { + are consistent with the conservation
purposes of the grant and + } give the board the authority to
approve, approve with conditions or deny the sale or transfer of
the land.
  { - Specifically, - }  The board may require conditions on the
sale or transfer to:
  (a) Ensure consistency with the intent of the original grant;
  (b) Ensure the ability of the party receiving the land through
the sale or transfer to carry out the obligations under the grant
agreement; and
  (c) Address the disposition of proceeds from the sale or
transfer, including any provisions for repayment, with interest,
of any grant funds.
  (2) The board may not allow a sale or transfer that results in
any profit to any person.
  (3) The board shall, by rule, define 'profit' for the purpose
of not allowing sales or transfers and shall specify the process
and criteria that the board will use in considering whether to
approve, approve with conditions or deny a sale or transfer.
  SECTION 24. ORS 541.392 is amended to read:
  541.392.   { - (1) - }  The Oregon Watershed Enhancement Board
shall report biennially to the Legislative Assembly on the
implementation of the management program under ORS 541.384 and
grants awarded under   { - ORS 541.399 - }  { +  section 13 of
this 2011 Act + }.  The report shall include but need not be
limited to:
    { - (a) - }  { +  (1) + } An explanation of the effectiveness
and workability of the partnership process described in ORS
541.384;
    { - (b) - }  { +  (2) + } A description of any modifications
to the process that have been instituted; { +  and + }
    { - (c) - }  { +  (3) + } Recommendations concerning the need
for future legislative action { + . + }  { - ; and - }
    { - (d) Information about the use of moneys received by and
distributed by the board under section 4b, Article XV of the
Oregon Constitution. - }
    { - (2) The board shall include with each report under
subsection (1) of this section a copy of each audit completed
pursuant to section 4c, Article XV of the Oregon
Constitution. - }

                               { +
RESTORATION AND PROTECTION RESEARCH FUND + }

  SECTION 25.  { + ORS 541.378 is repealed. The State Treasurer
shall transfer any balance of the Restoration and Protection
Research Fund remaining available and unexpended on the effective
date of this 2011 Act that was derived from interest on Watershed
Improvement Operating Fund moneys to the credit of the Watershed
Improvement Operating Fund. The State Treasurer shall transfer
any balance of the Restoration and Protection Research Fund
remaining available and unexpended on the effective date of this
2011 Act that was derived from interest on Watershed Improvement
Grant Fund moneys to the credit of the Watershed Improvement
Grant Fund. + }

                               { +
WATERSHED IMPROVEMENT OPERATING FUND + }

  SECTION 26. ORS 541.379 is amended to read:
  541.379. (1) The Watershed Improvement Operating Fund is
established in the State Treasury separate and distinct from the
General Fund. The Watershed Improvement Operating Fund shall
consist of all moneys placed in the fund as provided by law. All
moneys in the Watershed Improvement Operating Fund are
continuously appropriated for the following purposes:
  (a) Operational activities of the Oregon Watershed Enhancement
Board { +  for carrying out this section + };
  (b) Activities of state and local agencies and other public
entities  { + for which funding was approved by the board prior
to the effective date of this 2011 Act and that are + } related
to the restoration and protection of native salmonid populations,
watersheds, fish and wildlife habitats and water quality,
including but not limited to activities under the Oregon Plan;
  (c) Watershed improvement grants described in ORS 541.399 and
541.401 { +  as set forth in the 2009 Edition of Oregon Revised
Statutes and issued prior to the effective date of this 2011
Act + } that are not capital expenditures; and
  (d) Watershed improvement grants described in ORS 541.399 and
541.401 { +  as set forth in the 2009 Edition of Oregon Revised
Statutes and issued prior to the effective date of this 2011
Act + } that are capital expenditures.
  (2) Interest accruing to the Watershed Improvement Operating
Fund shall be credited to   { - the Restoration and Protection
Research Fund created under ORS 541.378 - }  { +  the fund + }.
Funds appropriated and not expended by the completion of a
biennium shall remain in the Watershed Improvement Operating
Fund.
  (3) The Oregon Watershed Enhancement Board created under ORS
541.360 shall administer the Watershed Improvement Operating
Fund.
  (4)   { - In addition to the funds made available for the
purposes of ORS 541.351 to 541.415 under ORS 541.399, - }  The
board   { - also - }  may accept gifts and grants from any public
or private source for the purposes described in subsection (1) of
this section.
  SECTION 27.  { + ORS 541.379 is repealed on July 1, 2013. The
State Treasurer shall transfer any balance of the Watershed
Improvement Operating Fund remaining available and unexpended on
July 1, 2013, to the credit of the Watershed Conservation
Operating Fund. + }

                               { +
WATERSHED IMPROVEMENT GRANT FUND + }

  SECTION 28. ORS 541.397 is amended to read:
  541.397. (1) The Watershed Improvement Grant Fund is
established separate and distinct from the General Fund. The
Watershed Improvement Grant Fund shall consist of all moneys
placed in the fund as provided by law. All moneys in the
Watershed Improvement Grant Fund are continuously appropriated to
fund watershed improvement grants described in ORS 541.399 and
541.401  { +  as set forth in the 2009 Edition of Oregon Revised
Statutes that were issued prior to the effective date of this
2011 Act + }. Interest accruing to the Watershed Improvement
Grant Fund shall be credited to   { - the Restoration and
Protection Research Fund created under ORS 541.378 - }  { +  the
fund + }. Funds appropriated and not expended by the completion
of a biennium shall remain in the Watershed Improvement Grant
Fund.
  (2) The Oregon Watershed Enhancement Board created under ORS
541.360 shall administer the Watershed Improvement Grant Fund and
provide grants from the fund   { - for the purposes described in
ORS 541.399 and 541.401 in the manner described under ORS 541.399
and 541.401 - }  { +  as described in subsection (1) of this
section + }.
  (3)   { - In addition to the funds made available for the
purposes of ORS 541.351 to 541.415 under ORS 541.399, - }  The
board   { - also - }  may accept gifts and grants from any public
or private source for the purpose of   { - providing - }  { +
funding + } the grants described in subsection
  { - (2) - }  { +  (1) + } of this section.
  SECTION 29.  { + ORS 541.397 is repealed on July 1, 2015. The
State Treasurer shall transfer any balance of the Watershed
Improvement Grant Fund remaining available and unexpended on July
1, 2015, to the credit of the Watershed Conservation Grant
Fund. + }

                               { +
MISCELLANEOUS + }

  SECTION 30.  { + (1) Section 9 of this 2011 Act and the
amendments to ORS 541.377 by section 1 of this 2011 Act are
intended to change the name of the 'Restoration and Protection
Subaccount ' to the 'Natural Resources Subaccount.  '
  (2) For the purpose of harmonizing and clarifying statutory
law, the Legislative Counsel may substitute for words designating
the 'Restoration and Protection Subaccount,' wherever they occur
in statutory law, other words designating the 'Natural Resources
Subaccount.' + }

                               { +
CAPTIONS + }

  SECTION 31.  { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }

                               { +
EMERGENCY CLAUSE + }

  SECTION 32.  { + 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
July 1, 2011. + }
                         ----------