68th OREGON LEGISLATIVE ASSEMBLY--1995 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 2431
A-Engrossed
Senate Bill 881
Ordered by the Senate April 20
Including Senate Amendments dated April 20
Sponsored by COMMITTEE ON TRANSPORTATION
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.
Provides financing method for extension of light rail system.
Defines terms. Establishes South North Construction Fund.
Appropriates specified moneys from fund to Department of
Transportation for engineering, design and certain construction
and acquisition costs for South North Line. Allows director of
department to enter into grant agreements with Tri-County
Metropolitan Transportation District of Oregon. { + Specifies
that mass transit district must reimburse utility for 50 percent
of relocation costs in certain circumstances. + }
Requires annual allocations of lottery moneys, commencing July
1, { - 1998 - } { + 1999 + }. Establishes Light Rail Bond
Fund and appropriates moneys from fund for payment of light rail
lottery bonds.
A BILL FOR AN ACT
Relating to the funding of the state's share of the costs of
expanding the regional light rail system to include a south
north line; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 9 of this Act are added to and
made a part of ORS 391.130 to 391.150. + }
SECTION 2. { + The Legislative Assembly finds that:
(1) The development, acquisition and construction of light rail
systems and their attendant rights of way, equipment and
facilities in the urban and metropolitan areas of the State of
Oregon do and will accomplish the purpose of creating jobs and
furthering economic development in Oregon by, among other
advantages:
(a) Providing an important element of the public infrastructure
that provides the basic framework for continuing and expanding
economic activity in this state;
(b) Increasing the economy and efficiency of public
transportation, improving the attractiveness of urban and
metropolitan areas to new businesses and supporting the
operations and prosperity of existing businesses in those areas
by making those businesses more accessible to their customers and
employees;
(c) Alleviating the inefficiencies of congestion and crowding
associated with, and reducing the burdens of expansion and
maintenance of, existing public transportation systems and
facilities, as well as reducing energy consumption and air
pollution fostered by the use of motor vehicles; and
(d) Creating employment opportunities in urban and metropolitan
areas through the funding of projects for the development and
construction of the light rail systems.
(2) Additionally, the provision of state and local moneys for
the proposed South North Line light rail project will encourage
the contribution of otherwise unavailable federal matching grant
moneys, the use of which will, for the reasons stated in
subsection (1) of this section, forward the purpose of creating
jobs and furthering economic development in Oregon.
(3) Based on the legislative findings described in this
section, the use of net proceeds from the operation of the state
lottery for the support of the South North Line light rail
project is an appropriate use of state lottery funds under
section 4 (3), Article XV of the Oregon Constitution and ORS
461.510.
(4) It is the intent and policy of the Legislative Assembly to
ensure the funding and support of the South North Line light rail
project defined in section 3 (11) of this 1995 Act in the manner
provided in sections 3 to 9 of this 1995 Act, to the extent
required for the state to realize the benefit of all federal
matching funds made available for that project, and to the extent
necessary to complete the project. + }
SECTION 3. { + As used in sections 2 to 9 of this 1995 Act,
unless the context requires otherwise:
(1) 'Appropriated funds' for a particular fiscal year means the
funds appropriated or otherwise made available by the Legislative
Assembly in the fiscal year to replenish reserves established as
additional security for light rail lottery bonds pursuant to the
authority granted in section 6 of this 1995 Act.
(2) 'Dedicated lottery revenues' for a particular fiscal year
means an amount of unobligated net lottery proceeds equal to $40
million minus the amount of lottery revenues that are required
under ORS 391.125 (1) to be transferred in that fiscal year to
the Regional Light Rail Extension Bond Account for the purpose of
paying when due the principal of and interest on the Westside
lottery bonds.
(3) 'Department' means the Department of Transportation.
(4) 'Director' means the Director of Transportation of the
State of Oregon.
(5) 'Financing obligations' means any bonds, notes, commercial
paper or other obligations for money borrowed issued by or on
behalf of Tri-Met for the purpose of financing any of the costs
of designing, acquiring, constructing and equipping the South
North Line, including the obligations of Tri-Met under any
municipal bond insurance policy, letter of credit, line of
credit, surety bond or other credit enhancement or liquidity
device given to secure or provide liquidity for any such bonds,
notes, commercial paper or other obligations.
(6) 'Grant agreement' means any agreement entered into by the
director and Tri-Met pursuant to section 4 (2) of this 1995 Act.
(7) 'Light Rail Bond Fund' means the account created pursuant
to section 7 of this 1995 Act within the South North Construction
Fund.
(8) 'Light rail lottery bonds' means:
(a) Any refunding lottery bonds;
(b) All South North lottery bonds; and
(c) Any bonds issued to refund any of the bonds described in
paragraph (a) or (b) of this subsection.
(9) 'Metro' means the metropolitan service district created
under ORS chapter 268 and exercising home rule charter powers.
(10) 'Refunding lottery bonds' means any bonds issued for the
purpose of refunding any Westside lottery bonds.
(11) 'South North Line' means the line extending Tri-Met's
regional light rail system from the vicinity of the intersection
of SE Sunnyside Road and I-205 in Clackamas County, Oregon, to
Clark County, Washington, including each phase and each segment
thereof and all portions thereof located within and without the
State of Oregon, as set forth in the Regional Transportation Plan
adopted by Metro as such plan may be amended from time to time.
(12) 'South North lottery bonds' means the bonds authorized to
be issued under section 6 (1) of this 1995 Act for the purpose of
funding the state's share of the cost of the South North Line.
(13) 'Tri-Met' means the Tri-County Metropolitan Transportation
District, a mass transit district created under ORS chapter 267.
(14) 'Unobligated net lottery proceeds' means all revenues
derived from the operation of the state lottery except for:
(a) The revenues used for the payment of prizes and the
expenses of the state lottery as provided in section 4 (4)(e),
Article XV of the Oregon Constitution, ORS 461.500 (2) and
461.510 (3) and (4);
(b) The revenues required to be applied, distributed or
allocated as provided in ORS 461.543; and
(c) The revenues allocated to the Regional Light Rail Extension
Construction Fund pursuant to ORS 391.140 that are required under
ORS 391.125 (1) to be transferred to the Regional Light Rail
Extension Bond Account for the purpose of paying when due the
principal of and interest on the Westside lottery bonds.
(15) 'Westside lottery bonds' means the bonds issued by the
state pursuant to the authority granted in ORS 391.140, but not
including any refunding lottery bonds. + }
SECTION 4. { + (1) The South North Construction Fund, separate
and distinct from the General Fund, is established in the State
Treasury. The following funds are appropriated continuously to
the Department of Transportation, and may be expended by the
department, for the purposes of paying the costs of the
preliminary engineering, final design, advanced right of way
acquisition or construction and acquisition of equipment and
facilities of the South North Line:
(a) All moneys on deposit from time to time in the South North
Construction Fund, including investment earnings thereon; and
(b) All dedicated lottery revenues in a particular fiscal year
that are not required to be deposited into the Light Rail Bond
Fund pursuant to section 7 (1) of this 1995 Act for the purpose
of paying the principal of and interest on the light rail lottery
bonds coming due in such fiscal year, including any such
dedicated lottery revenues that are required to be, but have not
yet been, transferred to the South North Construction Fund.
Moneys in the South North Construction Fund may be expended for
South North Line purposes by application of such moneys to pay
amounts committed to be paid under all grant agreements entered
into between the Director of Transportation and Tri-Met pursuant
to this section and the expenses of the department in
administering the South North Construction Fund and the Light
Rail Bond Fund. Interest received on moneys credited to the
South North Construction Fund shall accrue to and become part of
the South North Construction Fund.
(2) The director may enter into grant agreements with Tri-Met
that commit the department to pay anticipated funds from the
South North Construction Fund to Tri-Met for the purpose of
financing the costs of the South North Line, including servicing
any financing obligations, which grant agreements may, subject to
the provisions of this section, provide for the remittance of
such funds on such periodic basis, in such amounts, over such
period of years and with such priority over other commitments of
such funds as the director shall specify in the grant agreements.
The total amount committed under such grant agreements shall be
limited to the amount of $475 million to be made available to pay
the costs of the South North Line exclusive of the department's
administrative expenses. Notwithstanding any other provision of
law to the contrary, such grant agreements may provide for the
remittance to Tri-Met of funds from the South North Construction
Fund at the earliest possible dates upon which such funds are
available to the department and are needed by Tri-Met to pay the
costs of the South North Line, all without regard to any
specified percentage of the state's share of the total South
North Line project costs or the proportion of funds theretofore
advanced, or to be then advanced, from the South North
Construction Fund in relation to the funds advanced from other
federal, state or local sources to pay South North Line project
costs. Any such grant agreements, when executed by the director
and accepted by Tri-Met, shall be solely conditioned upon actual
funds available in the South North Construction Fund and shall be
valid, binding and irrevocable in accordance with its terms,
subject only to the availability of funds in the South North
Construction Fund. Tri-Met may pledge its right to receive
moneys under any grant agreement as security for any financing
obligations issued to finance any of the costs of designing,
acquiring, constructing and equipping the South North Line, which
pledge shall be valid and binding upon Tri-Met, the department
and all other persons from the date made, the rights so pledged
shall be immediately subject to the lien of such pledge without
physical delivery, filing or other act, and the lien of such
pledge shall be superior to all other claims and liens of any
kind whatsoever. Upon notice from Tri-Met that it has so pledged
its right to receive moneys under any grant agreement, the
department shall fully cooperate with Tri-Met and the pledgee to
give effect to such pledge, including but not limited to
acknowledging in writing to Tri-Met and the pledgee the existence
and validity of such pledge and agreeing to the payment of any
moneys due under the terms of the subject grant agreement into
such custodian account or accounts as shall be specified under
the terms of such pledge.
(3) Notwithstanding any grant agreement entered into by the
director under subsection (2) of this section, no moneys shall be
expended from the South North Construction Fund for the
preliminary engineering, final design, advanced right of way
acquisition or construction and acquisition of any segment of the
South North Line unless the director determines:
(a) That all state and local approvals are in place for the
segment of the South North Line for which funding is being
sought;
(b) That assurances are in place for obtaining all moneys,
other than moneys for which the determination is being made,
necessary to enable completion of the segment of the South North
Line for which funding is being sought and that Tri-Met has
agreed to provide an amount of money equal to that being provided
by the South North Construction Fund to pay the costs of the
segment of the South North Line for which funding is being
sought;
(c) With respect to the segment of the South North Line for
which funding is being sought, that the body of local officials
and state agency representatives designated by Metro and known as
the Joint Policy Advisory Committee on Transportation has
certified that the segment of the South North Line is a regional
priority; and
(d) With respect to construction of any segment of the South
North Line, the elements of the project that are designated for
state participation and an estimated total amount of the state's
funding obligation.
(4) When the actual expenditures for a segment of the South
North Line fall short of the estimated expenditures for such
segment, those moneys that are not required for that segment of
the project shall remain in the South North Construction Fund for
use in completing other segments of the South North Line.
(5) On or before August 31 in each year, the director shall
certify to the Governor and the State Treasurer whether or not
there existed, as of the end of the immediately preceding fiscal
year, an unobligated balance of dedicated lottery revenues in the
South North Construction Fund. If the director certifies that
there existed such an unobligated balance of dedicated lottery
revenues, an amount equal to the unobligated balance of such
dedicated lottery revenues as of the end of the immediately
preceding fiscal year shall revert to the Executive Department
Economic Development Fund created by ORS 461.540, and the State
Treasurer shall credit such amount to that fund on or before the
September 15 next following the date of the certification by the
director.
(6) The director shall certify the unobligated balance of
dedicated lottery revenues in the South North Construction Fund,
and that unobligated balance of dedicated lottery revenues shall
revert to the Executive Department Economic Development Fund if
the director determines that the South North Line has been
completed and such project has been accepted by the department,
and all claims, suits and actions arising out of such project
that could create a liability payable out of the moneys in the
South North Construction Fund have been resolved.
(7) For purposes of subsections (5) and (6) of this section,
dedicated lottery revenues in the South North Construction Fund
shall be obligated to the extent such moneys are needed to fund
the amounts committed to be paid in the current or any future
fiscal year under any grant agreement entered into by the
director under subsection (2) of this section or to pay the
expenses of the department in administering the South North
Construction Fund and the Light Rail Bond Fund.
(8) The department may deduct from the South North Construction
Fund the costs associated with administering the South North
Construction Fund and the Light Rail Bond Fund. + }
SECTION 5. { + (1) In each fiscal year beginning with the
fiscal year commencing July 1, 1999, there shall be allocated
from the Executive Department Economic Development Fund created
by ORS 461.540 an amount of unobligated net lottery proceeds that
will equal:
(a) The dedicated lottery revenues for such fiscal year; plus
(b) Such additional amount as shall be required to restore
withdrawals from any reserve account for light rail lottery bonds
established pursuant to the authority granted in section 7 (1) of
this 1995 Act to the extent such withdrawals result in the amount
on deposit in such reserve account being less than the amount the
state has covenanted to maintain therein.
(2) The amounts of unobligated net lottery proceeds allocated
from the Executive Department Economic Development Fund pursuant
to this section shall be transferred as follows and in the order
of priority indicated:
(a) First, there shall be transferred to the Light Rail Bond
Fund the portion of such unobligated net lottery proceeds that,
when added to any amounts then on deposit in the Light Rail Bond
Fund that are available for such purpose, will be sufficient to
pay all amounts of principal and interest coming due during that
fiscal year on all outstanding light rail lottery bonds;
(b) Second, to the extent any deficiency exists with respect to
any reserve account established as additional security for any
light rail lottery bonds and such deficiency has not theretofore
been cured by appropriated funds, there shall be transferred to
such reserve account such portion of such unobligated net lottery
proceeds as shall be required to cure the remaining deficiency;
and
(c) Third, the balance, if any, of such unobligated net lottery
proceeds shall be transferred to the South North Construction
Fund.
(3) The annual amounts of unobligated net lottery proceeds
required to be transferred to the South North Construction Fund
under subsection (2)(c) of this section and all other moneys
deposited in the South North Construction Fund, together with all
investment earnings on all amounts on deposit from time to time
in the South North Construction Fund, are continuously
appropriated only for the purposes of funding the South North
Line by application of such moneys to the payment of amounts
committed to be paid under grant agreements entered into between
the Director of Transportation and Tri-Met pursuant to section 4
of this 1995 Act and to pay the expenses of the Department of
Transportation in administering the South North Construction Fund
and the Light Rail Bond Fund. The annual amounts of unobligated
net lottery proceeds required to be transferred to the Light Rail
Bond Fund under subsection (2)(a) of this section or to any
reserve account under subsection (2)(b) of this section and all
other moneys deposited in the Light Rail Bond Fund, together with
all investment earnings on all amounts on deposit from time to
time in the South North Construction Fund, are continuously
appropriated only for the purposes of paying when due the
principal of and interest on the outstanding light rail lottery
bonds.
(4) Notwithstanding any other provision of law, the annual
allocation of unobligated net lottery proceeds made by subsection
(1) of this section and the transfers thereof required to be made
by subsection (2) of this section shall be satisfied and credited
from the first unobligated net lottery proceeds received by the
state before any other allocation, appropriation or disbursement
of the unobligated net lottery proceeds is made in such fiscal
year.
(5) The transfer of unobligated net lottery proceeds to the
Light Rail Bond Fund and the South North Construction Fund
authorized by this section shall continue until:
(a) All amounts owing under all light rail lottery bonds have
been paid in full; and
(b) All amounts committed to be paid under all grant agreements
entered into between the director and Tri-Met under section 4 of
this 1995 Act have been paid in full. The transfer of
unobligated net lottery proceeds to the Light Rail Bond Fund and
the South North Construction Fund authorized by this section
shall cease when the director certifies in writing that transfers
of moneys under this section are no longer necessary because:
(A) Moneys in the South North Construction Fund are sufficient
for the payment in full of all amounts owing under all
outstanding light rail lottery bonds and all grant agreements
entered into between the director and Tri-Met under section 4 of
this 1995 Act and for the payment in full of the expenses of the
department in administering the South North Construction Fund and
the Light Rail Bond Fund; and
(B) The South North Line has been completed and such project
has been accepted by the department, and all claims, suits and
actions arising out of such project that could create a liability
payable out of the moneys in the South North Construction Fund
have been resolved. The director shall deliver a copy of such
certification to the Governor and the State Treasurer.
(6) Upon receipt of the director's written certification
pursuant to subsection (5) of this section that transfer of
dedicated lottery revenues to the Light Rail Bond Fund and the
South North Construction Fund under this section is no longer
necessary, the State Treasurer shall thereafter credit dedicated
lottery revenues received by the Light Rail Bond Fund or the
South North Construction Fund under this section to the Executive
Department Economic Development Fund. + }
SECTION 6. { + (1) In accordance with any applicable
provisions of ORS chapters 286 and 288, the State Treasurer, at
the request of the Director of Transportation, shall issue South
North lottery bonds for the purpose of financing the state share
of the costs of the South North Line. South North lottery bonds
may be issued from time to time in one or more series in an
aggregate amount not to exceed:
(a) The principal sum of $475 million; plus
(b) An amount equal to the costs incurred in connection with
the issuance of the South North lottery bonds and other
administrative expenses of the State Treasurer and the department
in connection with the issuance of the South North lottery bonds;
plus
(c) The amount of any reserves determined to be necessary or
advantageous in connection with the South North lottery bonds;
plus
(d) The amount needed to pay for the cost of acquiring any
municipal bond insurance policy, letter of credit, line of
credit, surety bond or other credit enhancement device obtained
for the purpose of providing additional security or liquidity for
the South North lottery bonds.
(2) The director shall submit to the State Treasurer from time
to time written requests to issue the South North lottery bonds
as provided in subsection (1) of this section in amounts
sufficient to provide in a timely fashion the moneys required to
fund the obligations of the department under any grant agreements
entered into under section 4 of this 1995 Act for the purpose of
financing the state share of the costs of the South North Line.
(3) Moneys received from the issuance of South North lottery
bonds, including any investment earnings thereon, may be expended
only for the purpose of:
(a) Financing the costs of development, acquisition and
construction of the South North Line, including paying debt
service on any financing obligations;
(b) Paying the costs of issuing the South North lottery bonds
and other administrative expenses of the State Treasurer in
carrying out the provisions of section 7 of this 1995 Act and
this section;
(c) Funding any reserves determined to be necessary or
advantageous in connection with such South North lottery bonds;
and
(d) Paying the cost of acquiring any municipal bond insurance
policy, letter of credit, line of credit, surety bond or other
credit enhancement device obtained for the purpose of providing
additional security or liquidity for the South North lottery
bonds.
(4) In addition to the South North lottery bonds authorized to
be issued under this section, the State Treasurer is hereby
authorized, at the request of the director, to issue from time to
time one or more series of refunding lottery bonds for the
purpose of refunding in whole or in part any outstanding Westside
lottery bonds. Such refunding lottery bonds shall be issued in
such amount as the State Treasurer shall determine is necessary
or appropriate in order to:
(a) Pay or defease the principal of, redemption premium, if
any, and interest on the Westside lottery bonds to be refunded
thereby;
(b) Pay the costs of issuing the refunding lottery bonds and
other administrative expenses of the State Treasurer in issuing
such bonds;
(c) Fund any reserves determined to be necessary or
advantageous in connection with such refunding lottery bonds; and
(d) Pay the cost of acquiring any municipal bond insurance
policy, letter of credit, line of credit, surety bond or other
credit enhancement device obtained for the purpose of providing
additional security or liquidity for the refunding lottery bonds.
(5) All light rail lottery bonds issued under this section
shall be payable from:
(a) The unobligated net lottery proceeds pledged thereto as
provided in subsection (7) of this section;
(b) Any appropriated funds; and
(c) The moneys and investments on deposit from time to time in
the Light Rail Bond Fund and any reserve account established as
additional security for the light rail lottery bonds. The light
rail lottery bonds shall not be a general obligation of this
state, and shall not be secured by or payable from any funds or
assets of this state other than the unobligated net lottery
proceeds and any appropriated funds and other moneys and
investments on deposit from time to time in the Light Rail Bond
Fund. In no circumstance shall the state be obligated to pay
amounts due under any bonds issued under this section from any
source other than unobligated net lottery proceeds and the
appropriated funds and other moneys and investments on deposit
from time to time in the Light Rail Bond Fund. With the exception
of unobligated net lottery proceeds, in no event shall the
Legislative Assembly be under any legal compulsion or obligation
to appropriate or expend any other funds for the purpose of
paying any amounts owing on any light rail lottery bonds.
(6) If any light rail lottery bonds are secured by reserves,
either in the form of cash, investments, surety bonds, municipal
insurance, lines of credit, letters of credit or other similar
instruments, that the state has covenanted to maintain at
particular levels, and the reserves are drawn down below the
level which the state has covenanted to maintain, the director
shall promptly certify to the Legislative Assembly or, if the
Legislative Assembly is not then in session, to the Emergency
Board, the amount needed to restore the reserves to their
required level. The Legislative Assembly or the Emergency Board,
as the case may be, may provide appropriated funds in the amount
certified by the director. Any appropriated funds so provided
shall be used immediately to restore the balance in the reserves
established for the light rail lottery bonds. The director may
enter into covenants with the owners of the light rail lottery
bonds that specify the timing and content of the director's
certification. By enacting this provision, the Legislative
Assembly acknowledges its current intention to provide
appropriated funds in the amount certified by the director
pursuant to this section. However, neither the Legislative
Assembly nor the Emergency Board shall have any legal obligation
to provide appropriated funds.
(7) Notwithstanding ORS 288.855 or any other provision of law,
all light rail lottery bonds, regardless of whether issued in one
or more issues, shall be secured by a pledge of and lien on the
unobligated net lottery proceeds and amounts in the Light Rail
Bond Fund. The lien of such pledge shall be valid and binding
immediately upon issuance of the light rail lottery bonds secured
thereby. The unobligated net lottery proceeds and amounts in the
Light Rail Bond Fund shall be immediately subject to the lien of
such pledge upon receipt of the unobligated net lottery proceeds
by the state regardless of when or whether they are allocated or
transferred to the Light Rail Bond Fund and without physical
delivery, filing or other act. The lien of such pledge of
unobligated net lottery proceeds and amounts in the Light Rail
Bond Fund shall be superior to all other claims, liens and
appropriations of any kind whatsoever. In connection with the
issuance of any light rail lottery bonds, the State Treasurer
shall have the authority and discretion to provide that:
(a) All light rail lottery bonds, regardless of series or time
of issuance, shall be equally and ratably secured by the lien of
the pledge of unobligated net lottery proceeds and amounts in the
Light Rail Bond Fund established pursuant to this section 7 of
this 1995 Act; or
(b) The light rail lottery bonds of one or more particular
series shall be secured by the lien of such pledge on a basis
that is prior and superior, or inferior and subordinate, to the
lien of such pledge securing one or more other series of light
rail lottery bonds.
(8) The state hereby makes the following covenants with and for
the benefit of the owners from time to time of the light rail
lottery bonds. The covenants shall constitute a contract with
such owners:
(a) Except as authorized in subsection (7) of this section with
respect to the lien of the pledge of unobligated net lottery
proceeds that secures light rail lottery bonds, the state shall
not create any lien or encumbrance on the unobligated net lottery
proceeds that is equal or superior to the lien created by
subsection (7) of this section;
(b) The state shall budget and appropriate in each fiscal year
an amount of unobligated net lottery proceeds that, when added to
other funds lawfully budgeted and appropriated and available for
such purpose, will be sufficient to pay in full the principal and
interest due and to become due in such fiscal year on all
outstanding light rail lottery bonds and maintain the required
balance in any reserves established for light rail lottery bonds,
and will apply the unobligated net lottery proceeds and any other
amounts so budgeted and appropriated to the payment of such
principal and interest when due and the maintenance of such
reserves; and
(c) Until such time as all light rail lottery bonds have been
paid in full or provision for such payment has been made by means
of a defeasance in accordance with ORS 288.677, the state will
continue to operate the lottery in accordance with the
requirements of section 4, Article XV of the Oregon Constitution
as in effect on the date of issuance of the light rail lottery
bonds in a manner that is intended to produce unobligated net
lottery proceeds in amounts at least sufficient to pay when due
all amounts of principal and interest on all light rail lottery
bonds.
(9) The moneys in the Light Rail Bond Fund shall be used and
applied by the director to pay when due the principal of and
interest on any bonds issued under this section.
(10) The interest on all light rail lottery bonds issued under
this section and on any refunding and advance refunding bonds
issued under ORS 286.051 for the purpose of refunding any light
rail lottery bonds is exempt from personal income taxation
imposed by this state under ORS chapter 316.
(11) In connection with the issuance of any light rail lottery
bonds, the State Treasurer may establish such accounts and
subaccounts within the South North Construction Fund and the
Light Rail Bond Fund and may establish such other funds, accounts
and subaccounts as the State Treasurer shall determine are
necessary or appropriate. The net proceeds derived from the
issuance and sale of the South North lottery bonds issued under
this section to finance the costs of the South North Line shall
be deposited in the South North Construction Fund and disbursed
upon the written request of the director for the purpose of
funding the department's obligations under any grant agreements
entered into with Tri-Met pursuant to section 4 of this 1995
Act. + }
SECTION 7. { + (1) The Light Rail Bond Fund is created as a
fund separate and distinct from the General Fund. In connection
with the issuance of any light rail lottery bonds, the State
Treasurer may establish such reserves as are deemed necessary or
appropriate in order to provide additional security therefor,
which reserves shall be held to the credit of an appropriate
account of the Light Rail Bond Fund. The State Treasurer may
provide that all or any portion of the Light Rail Bond Fund, or
any account therein, shall be held by a trustee, and may enter
into agreements with the trustee regarding the use and
application of the amounts held in the Light Rail Bond Fund and
accounts therein. In each fiscal year in which any amounts of
principal or interest are due and payable on any light rail
lottery bonds, there shall be transferred to the Light Rail Bond
Fund or the appropriate reserve account therein the amounts of
unobligated net lottery proceeds required by section 5 (2)(a) and
(b) of this 1995 Act and any appropriated funds.
(2) All moneys on deposit from time to time in the Light Rail
Bond Fund together with all investment earnings thereon, are
continuously appropriated to the payment of the light rail
lottery bonds. All investment earnings on moneys on deposit from
time to time in the Light Rail Bond Fund shall be retained in
that account and applied to pay the principal of and interest on
the light rail lottery bonds. + }
SECTION 8. { + (1) Subject to ORS chapter 279 and any
applicable prohibitions against preferences in contracts related
to the construction phase of the South North Line, the managing
agencies shall develop procedures that afford qualified
businesses in Oregon the opportunity to compete for project
contracts to the maximum extent feasible and consistent with
federal laws and regulations governing Federal Transit
Administration grants.
(2) The managing agencies shall seek the cooperation and
assistance of contracting and construction associations in this
state when establishing the contracting procedures for the South
North Line. The managing agencies shall also establish and
implement programs to provide contracting and construction
businesses with information relating to the project.
(3) The managing agencies, to the maximum extent feasible,
shall encourage disadvantaged business enterprises to bid for
contracts and to otherwise participate in the construction of the
South North Line. + }
SECTION 9. { + Notwithstanding any other provision of law,
nothing shall prevent the Legislative Assembly from subsequently
dedicating other moneys to be deposited in the South North
Construction Fund to be used to pay for the costs of the South
North Line, including but not limited to moneys derived from:
(1) The sale of property, interests in property or development
rights, including the sale of concession rights and franchises;
(2) Gifts, donations, grants, equity contributions, royalties,
concession fees, franchise fees or other fees, taxes,
impositions, revenues, tolls, charges, assessments, levies,
surcharges, impositions, duties, tariffs or other revenues; or
(3) Moneys that under an agreement with any governmental unit
or private person or entity, are required to be deposited in the
South North Construction Fund. + }
SECTION 10. { + (1) When location, construction, relocation,
reconstruction, maintenance or repair of the South North Line
requires a utility to relocate any of its facilities that are
located in a public right of way, the mass transit district that
constructs or operates the light rail system shall reimburse the
utility for 50 percent of the costs and expenses incurred by the
utility in relocating the facilities.
(2) As a condition of reimbursement, a district may require a
utility to participate in preparation of the federal grant
application and determine the cost and expense of relocation. The
utility and the district shall agree upon the manner and amount
of reimbursement.
(3) As used in this section:
(a) 'South North Line' has the meaning given that term in
section 3 of this Act.
(b) 'Utility' has the meaning given that term in ORS
366.332. + }
----------