74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1641
 
                           A-Engrossed
 
                         Senate Bill 470
                 Ordered by the Senate March 23
           Including Senate Amendments dated March 23
 
Sponsored by Senators MONNES ANDERSON, NELSON (at the request of
  Oregon Telecommunications Coordinating Council)
 
 
                             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.
 
  Directs Economic and Community Development Department to
establish and administer grant program for purpose of improving
  { - capacity and accessibility of Oregon's Internet exchanges
and Internet web-hosting facilities - }   { + Oregon Internet
exchange accessibility, capacity and connectivity and expanding
Oregon web-hosting capabilities + }. Allocates moneys from
Administrative Services Economic Development Fund to department
to implement program.
 
                        A BILL FOR AN ACT
Relating to the Internet; and limiting expenditures.
  Whereas the Legislative Assembly has declared that it is the
immediate economic strategy of the state to focus on strategies
and investments that maximize the economic benefit to the state
of the global shift to an information-, science- and
technology-driven economy, and to attract and encourage
industries and companies that make significant use of the
high-capacity telecommunications-, science- and
technology-related manufacturing processes typical of these
emerging economic sectors; and
  Whereas the Legislative Assembly has declared that it is the
goal of this state to promote access to broadband services for
all Oregonians in order to improve the economy in Oregon; and
  Whereas the Legislative Assembly has found that the
construction, improvement and expansion of the state's
telecommunications infrastructure provides the basic framework
for continuing and expanding economic activity in this state,
thereby providing jobs and economic opportunity for the people of
Oregon; and
  Whereas the Internet and Internet Protocol (IP) networks and
technologies are emerging as an infrastructure necessary for the
conduct of commerce and communication and necessary to establish
and maintain Oregon's global competitiveness; and
  Whereas the network performance and quality of Internet data
transmissions, especially for time-sensitive applications such as
voice and video, will be enhanced by the improved routing of
Oregon Internet traffic; and
  Whereas Oregon currently has only two Internet exchanges,
located in Portland and Eugene; and
  Whereas improved Internet connectivity within Oregon's
different geographic regions will expand the potential for
Internet-intensive businesses to locate in different parts of
Oregon; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The Economic and Community Development
Department shall establish and administer a grant program
designed to promote:
  (a) Expanding and extending self-sustaining Internet exchanges
to all geographic areas of the state.
  (b) Improving Oregon Internet exchange accessibility, capacity
and connectivity.
  (c) Increasing the volume of Internet traffic in Oregon by
expanding Oregon web-hosting capabilities.
  (2) The department shall make grants under the program
established pursuant to this section that promote the goals
specified in subsection (1) of this section. Individual grants
under the program may not exceed $150,000. Grants may be made
only for the purpose of:
  (a) Increasing the number of, and improving the capacity and
accessibility of, Oregon Internet exchanges; and
  (b) Improving the capacity and accessibility of Internet
web-hosting facilities located in the state.
  (3) The Oregon Economic and Community Development Commission
shall adopt rules:
  (a) Governing the submission and processing of applications for
grants under this section;
  (b) Establishing a process for evaluating and approving
applications for grants; and
  (c) Establishing a process for tracking and reporting the
effectiveness of the grants in meeting the goals specified in
subsection (1) of this section.
  (4) Subject to subsection (5) of this section, any person or
public body, as defined in ORS 174.109, may apply for grants
under the program established pursuant to this section.
  (5) A public body, as defined in ORS 174.109, other than an
institution of higher education, may apply for a grant under the
program established pursuant to this section only if the public
body makes a joint application for the grant with a for-profit
corporation and has entered into an agreement with the for-profit
corporation for implementation of the program to be funded by the
grant. + }
  SECTION 2.  { + (1) There is allocated to the Economic and
Community Development Department from the Administrative Services
Economic Development Fund the amount identified in subsection (2)
of this section.
  (2) Notwithstanding any other law limiting expenditures, the
amount of $1 million is established for the biennium beginning
July 1, 2007, as the maximum limit for payment of grants and
expenses by the Economic and Community Development Department
from the Administrative Services Economic Development Fund under
the grant program established pursuant to section 1 of this 2007
Act.
  (3) The allocation of moneys from the Administrative Services
Economic Development Fund under this section is subject to the
requirements in section 4, Article XV of the Oregon Constitution,
for deposit of specified amounts of the net proceeds from the
Oregon State Lottery into the Education Stability Fund and into
the Parks and Natural Resources Fund and shall be made only after
satisfaction or payment of:
  (a) Amounts allocated to Westside lottery bonds issued under
ORS 391.140 or to the reserves or any refunding related to the
Westside lottery bonds in accordance with the priority for
allocation and disbursement established by ORS 391.130;
  (b) All liens, pledges or other obligations relating to lottery
bonds or refunding lottery bonds that are due or payable during
the biennium beginning July 1, 2007; and
  (c) Amounts required by any other pledges of, or liens on, net
proceeds from the Oregon State Lottery. + }
  SECTION 3.  { + The Economic and Community Development
Department shall make a report to the Seventy-fifth Legislative
Assembly, in the manner provided by ORS 192.245, on the
implementation of the grant program established under section 1
of this 2007 Act. + }
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