Oregon may form an authority to oversee the Moda Center

The Oregon Department of Administrative Services may negotiate agreements with public bodies to form a joint authority to own and oversee the Moda Center. The authority may include one or more public bodies. Agreements cannot pledge state money or property except money in the Oregon Arena Fund, pledge the state's taxing power or credit, or create state debt that violates the Oregon Constitution.

Oregon transfers specified tax amounts to the Oregon Arena Fund; the State Treasurer may issue Moda Center debt, and transfers under this section may occur, only after the listed conditions are met. The amounts track tax withheld from wages for specified Rose Quarter work and estimated tax paid by performers on income from Rose Quarter performances. The Legislature states its intention to issue debt yielding $365 million in net proceeds, but the state and Legislature have no legal duty to put money in the fund. Debt and section 4 transfers are barred until the team's ownership change is finalized and approved, the authority and required management agreements are in place, renovation plans are approved, and Portland and Multnomah County make binding, substantial financing commitments. State debt proceeds and Multnomah County deposits may be used only for arena construction, renovation, maintenance, deferred maintenance, and debt service. Work related tax totals are determined every three months starting September 1, 2027; performer tax estimates begin July 1, 2028, and recur yearly. These calculations continue until the later of the specified lease expiration date or retirement of the state debt whose proceeds went into the fund.

The joint authority and a management entity must sign agreements covering the lease, project approvals, cost overruns, and remedies. If the department enters an agreement to form the authority, it must report to lawmakers. The agreement duties apply to the joint authority and a management entity. The reporting duty applies to the Department of Administrative Services if it enters an agreement to form the authority. The lease must last at least 20 years. The authority need not pay project cost overruns unless they result from scope or design changes it requests after final approval. Oregon must hire an arena negotiation expert at its own expense to review comparable arena projects; that review does not require any particular agreement term. Quarterly reports cover renovation plans and work, authority spending, and revenue amounts and sources. The reporting requirement ends January 2, 2032. The agreements must provide for good faith talks about possible amendments by five years before the lease ends.