SB 1501 — Relating to the Moda Center; and declaring an emergency.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled Senate Bill 1501 OrderedSponsored by theSenators SenateWAGNER, FebruaryFREDERICK, 27LIEBER, IncludingRepresentatives SenateBOWMAN, AmendmentsISADORE, datedNGUYEN FebruaryD; 27 Sponsored by Senator WAGNER;

SenatorSenators MANNING JRJR, SUMMARYMEEK, TheRepresentatives followingNELSON, summaryPHAM isH, notRIEKE preparedSMITH, byWATANABE theCHAPTER sponsors................................................. of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly.

ItAN isACT anRelating editor’sto brief statement of the essentialModa featuresCenter; of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

The Act allows DAS to enter into agreements to own and operate the Moda Center.

The Act sends certain tax revenue to a fund to pay for costs of the Moda Center.

(Flesch Readability Score:

68.9).

Authorizes the Oregon Department of Administrative Services to enter into agreements to own and [operate] oversee the operations of the Moda Center in the City of Portland.

Provides that agreements may not pledge or obligate state moneys except for moneys in the Oregon Arena Fund.

Creates the Oregon Arena Fund in the State Treasury.

Dedicates certain tax revenues related to work in and around the Moda Center to the fund.

Sets forth prerequisite conditions for tax diversion and debt issuance.

Sets forth mandatory provisions of agreements relating to the Moda Center.

Declares an emergency, effective on passage.

A BILL FOR AN ACT Relating to the Moda Center;

NOTE:(8)(a) “Rose Quarter” means the sports and entertainment district containing the Moda Center, Memorial Coliseum, public plazas and associated facilities and infrastructure, as de- picted on the map titled “Project Site Map” at Exhibit 2.5 in the Amended and Restated De- velopment Agreement between Rip City Management LLC and the City of Portland, dated September 19, 2024.

Matter in boldfaced type in an amended section is new;

matter [italic and bracketed] is existing law to be omitted.

New sections are in boldfaced type.

LC 146 A-Eng.

SB 1501 (8)(a) “Rose Quarter” means the sports and entertainment district containing the Moda Center, Memorial Coliseum, public plazas and associated facilities and infrastructure, as de- picted on the map titled “Project Site Map” at Exhibit 2.5 in the Amended and Restated De- velopment Agreement between Rip City Management LLC and the City of Portland, dated September 19, 2024.

(1) The Oregon Department of Administrative Services, in consultation with the Governor and the Attorney General, is authorized to negotiate and enter into agreementsagree- ments with one or more public bodies to establish a joint authority, the purpose of which is to own and oversee the operations of the Moda Center.

Enrolled Senate Bill 1501 (SB 1501-B) Page 1 (2)(a) An agreement under this section:

(a) Proceeds of debt instruments issued by the State of Oregon and deposited in the fund and moneys transferred to the fund under section 4 of this 2026 Act may be used only for constructionconstruction, renovation, maintenance and renovationdeferred maintenance of the Moda Center and debt service;

[2](a) A-Eng.On September 1, 2027, and every three months thereafter, the Department of Revenue shall determine the aggregate amount withheld in the previous three months pursuant to ORS 316.162 to 316.221 by operating organizations from wages paid for services:

SB 1501 (a) On September 1, 2027, and every three months thereafter, the Department of Revenue shall determine the aggregate amount withheld in the previous three months pursuant to ORS 316.162 to 316.221 by operating organizations from wages paid for services:

(2) As soon as practicable after an amount described in subsection (1)(a), (b) or (c) of this section is determined or estimated, the Oregon Department of Administrative Services shall Enrolled Senate Bill 1501 (SB 1501-B) Page 2 cause an amount equal to the amount determined or estimated to be transferred from the General Fund to the Oregon Arena Fund established under section 3 of this 2026 Act, subject to section 5 of this 2026 Act.

(3) The determinations and estimates under subsection (1) of this section shall be made during the period beginning on the dates specified in subsection (1) of this section, and endingend- ing on the later of:

(a) January 1 following the date on which the lease term described in section 6 of this 2026 Act expires;

[3](a) A-Eng.The State of Oregon takes an ownership interest in the Moda Center that the Oregon Department of Administrative Services determines is greater than a nominal interest;

SB 1501 (a) The State of Oregon takes an ownership interest in the Moda Center that the Oregon Department of Administrative Services determines is greater than a nominal interest;

(1) The joint authority and a management entity must execute one or more agreements that collectively contain all of the following provisions:

(1)(a) A binding commitment from the management entity to lease the Moda Center for a minimum term of 20 years;

(2)(b) A provision authorizing the joint authority to give final approval of scope, schedule and budget for construction or renovation projects relating to the Moda Center, provided that such approval does not cause unreasonable delay to the project;

(3)(c) A provision addressing responsibility for cost overruns in any project carried out by the joint authority, which must provide that the Statejoint ofauthority Oregon is not required to pay for any cost overruns, except to the extent that such cost overruns are the result of modifica- tions to the project scope or design that the Statejoint ofauthority Oregon requests after final approval;

(4)Enrolled Senate Bill 1501 (SB 1501-B) Page 3 (d) A provision authorizing the following remedies, at a minimum, in case of breach of a nonrelocation agreement or exclusive site agreement, as applicable, by the management en-entity: tity:

(a)(A) Injunctive relief;

and (b)(B) Liquidated damages in the amount of any outstanding debt issued by any public body that is part of the joint authority for projects at the Moda Center;