SB 1501

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
  Enrolled
  Senate Bill 1501
Sponsored by Senators WAGNER, FREDERICK, LIEBER, Representatives BOWMAN, ISADORE,
   NGUYEN D; Senators MANNING JR, MEEK, Representatives NELSON, PHAM H, RIEKE
   SMITH, WATANABE
  CHAPTER .................................................
  AN ACT
Relating to the Moda Center; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
    SECTION 1. As used in sections 1 to 8 of this 2026 Act:
    (1) “Construction organization” means an employer that derives revenue in a given
quarter from activities or operations directly related to the renovation or other improvement
of the Moda Center.
    (2) “Joint authority” means the joint authority formed under section 2 of this 2026 Act.
    (3) “Management entity” means an entity that has a long-term operating agreement or
lease to manage the Moda Center.
    (4) “Moda Center” means the multipurpose sports and entertainment arena known, as
of the effective date of this 2026 Act, as the Moda Center, located at 1 North Center Court
Street, Portland, Oregon, and the surrounding areas containing ancillary hospitality and
support functions.
    (5) “Operating organization” means an employer that derives revenue from activities or
operations that are physically located in the Rose Quarter, excluding construction organiza-
tions and performers.
    (6) “Performer” means a person or entity who performs, or whose employees or con-
tractors perform, for any audience at the Rose Quarter, including, without limitation, a
musical, comedic, theatrical, sports or other artistic, athletic or entertainment performance,
excluding a professional sports team that conducts its regular season home schedule at a
facility located in the Rose Quarter.
    (7) “Public body” has the meaning given that term in ORS 174.109.
    (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.
    (b) “Rose Quarter” does not include transit facilities owned or operated by a public body.
    SECTION 2. (1) The Oregon Department of Administrative Services, in consultation with
the Governor and the Attorney General, is authorized to negotiate and enter into agree-
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) May not purport to pledge or obligate any state moneys, revenues or other property,
except for moneys credited to the Oregon Arena Fund established under section 3 of this 2026
Act;
    (B) May not purport to pledge the taxing power or the full faith and credit of the State
of Oregon; and
    (C) May not purport to create an indebtedness of the State of Oregon in violation of Ar-
ticle XI, section 7, of the Oregon Constitution.
    (b) An agreement under this section is void to the extent that it violates any provision
of this subsection.
    SECTION 3. (1) The Oregon Arena Fund is established in the State Treasury, separate
and distinct from the General Fund. Interest earned by the Oregon Arena Fund must be
credited to the fund. The Oregon Arena Fund consists of moneys appropriated, allocated,
deposited or transferred to the fund by the Legislative Assembly or from any public or pri-
vate source and interest earned on moneys in the fund. The moneys in the Oregon Arena
Fund are continuously appropriated to the Oregon Department of Administrative Services
for the purpose of paying expenses of the joint authority, including, without limitation, ex-
penses related to construction, renovation, capital improvements, repair, maintenance, de-
ferred maintenance, arena operations and debt service, and subject to subsection (3) of this
section.
    (2) The department and the State Treasurer are authorized to create subaccounts within
the fund as necessary or convenient for the administration of the fund.
    (3) The department and the State Treasurer shall ensure that the following moneys are
separately accounted for and used as follows:
    (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
construction, renovation, maintenance and deferred maintenance of the Moda Center and
debt service; and
    (b) Moneys deposited in the fund by Multnomah County may be used only for con-
struction, renovation, maintenance and deferred maintenance of the Moda Center and debt
service.
    (4) The State of Oregon and the Legislative Assembly do not have a legal obligation to
deposit moneys in the fund, appropriate moneys to the fund or otherwise make moneys
available to the fund. The Legislative Assembly declares its current intention to issue debt
instruments sufficient to yield $365,000,000 in net proceeds to support construction and ren-
ovation of the Moda Center.
    SECTION 4. (1) During the period specified in subsection (3) of this section:
    (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:
    (A) Physically performed in the Rose Quarter; or
    (B) Related to activities or operations that are physically located in the Rose Quarter.
    (b) 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 construction organizations from wages paid for services directly
related to the renovation or other improvement of the Moda Center.
    (c) On July 1, 2028, and on July 1 of each year thereafter, the division of the Oregon
Department of Administrative Services that serves as the office of economic analysis shall
estimate the amount of tax paid by performers under ORS chapter 316 on income derived
from performances at the Rose Quarter in the previous 12 months.
    (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
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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 end-
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; or
    (b) January 1 following the date on which all indebtedness incurred by the State of
Oregon, the net proceeds of which are deposited in the Oregon Arena Fund, is retired.
    (4) Notwithstanding ORS 314.835, the Department of Revenue may share information ob-
tained from employers and performers under this section and ORS chapter 316, and associ-
ated tax data, with the Oregon Department of Administrative Services as necessary to carry
out the provisions of this section. Any information shared pursuant to this subsection must
be aggregated to the extent practicable and remains subject to applicable state and federal
confidentiality laws.
    (5) The Oregon Department of Administrative Services and the Department of Revenue
may adopt rules necessary or convenient for the administration of this section. The Oregon
Department of Administrative Services and the Department of Revenue may require report-
ing from taxpayers as necessary to carry out the provisions of this section.
    SECTION 5. Notwithstanding any other laws authorizing the issuance of debt instru-
ments, the State Treasurer may not issue any debt instruments for purposes related to the
Moda Center, and no moneys may be transferred pursuant to section 4 (2) of this 2026 Act,
unless all of the following conditions are met:
    (1) A change in ownership of the Portland Trail Blazers basketball team is finalized and
approved by the National Basketball Association, and the team remains a member in good
standing of the National Basketball Association;
    (2) The State of Oregon and the City of Portland have entered into an agreement, which
may include other entities, to establish a joint authority for the ownership and operation of
the Moda Center, and:
    (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; or
    (b) The department determines that an ownership interest in the Moda Center is not
necessary for the issuance of debt instruments by the state;
    (3) The joint authority has executed one or more agreements with a management entity
that satisfy the requirements of section 6 of this 2026 Act;
    (4) The joint authority has reviewed plans for renovation of the Moda Center and has
approved the project scope, schedule and budget; and
    (5) The department has determined that the City of Portland and Multnomah County
have made binding and substantial commitments to finance construction, renovation, main-
tenance and deferred maintenance of the Moda Center and related debt service.
    SECTION 6. (1) The joint authority and a management entity must execute one or more
agreements that collectively contain all of the following provisions:
    (a) A binding commitment from the management entity to lease the Moda Center for a
minimum term of 20 years;
    (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;
    (c) A provision addressing responsibility for cost overruns in any project carried out by
the joint authority, which must provide that the joint authority 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 joint authority requests after final approval;
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    (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
entity:
    (A) Injunctive relief; and
    (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;
    (e) A provision authorizing a management entity to seek injunctive relief or specific
performance to prevent acts or omissions of the joint authority or any public body belonging
to the joint authority that materially impair the management entity’s ability to use or oc-
cupy the Moda Center in accordance with relevant agreements; and
    (f) A provision requiring all parties to engage in good-faith discussions regarding
amendments to terms of the agreements, without obligating any party to agree to any
amendments, on or before the date five years before the expiration of the term of the lease.
    (2)(a) In negotiating the agreements, the State of Oregon shall, in a timely manner and
at its own expense, retain a professional with expertise in arena negotiations to review in-
formation regarding recent comparable National Basketball Association arena projects in
similar-sized markets.
    (b) Nothing in this subsection requires the inclusion or exclusion of any particular term
in an agreement between the joint authority and a management entity.
    SECTION 7. If the Oregon Department of Administrative Services enters into an agree-
ment to establish a joint authority under section 2 of this 2026 Act, the department shall,
at least once per quarter, report to the standing or interim legislative committee related to
ways and means on the following:
    (1) Planning, design and execution of renovations to the Moda Center;
    (2) Expenditures by the joint authority; and
    (3) Amounts and sources of revenue obtained by the joint authority.
    SECTION 8. Section 7 of this 2026 Act is repealed on January 2, 2032.
    SECTION 9. In addition to and not in lieu of any other appropriation, there is appropri-
ated to the Oregon Department of Administrative Services, for the biennium ending June 30,
2027, out of the General Fund, the amount of $1,511,985, for Enterprise Asset Management,
for implementation of sections 1 to 8 of this 2026 Act.
    SECTION 10. This 2026 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2026 Act takes effect
on its passage.
Enrolled Senate Bill 1501 (SB 1501-B)  Page 4
Passed by Senate March 4, 2026  Received by Governor:
  ........................M.,........................................................., 2026
        ..................................................................................
  Approved:
  Obadiah Rutledge, Secretary of Senate
  ........................M.,........................................................., 2026
        ..................................................................................
  Rob Wagner, President of Senate
  ..................................................................................
  Tina Kotek, Governor
Passed by House March 6, 2026
  Filed in Office of Secretary of State:
        ..................................................................................   ........................M.,........................................................., 2026
  Julie Fahey, Speaker of House
  ..................................................................................
  Tobias Read, Secretary of State
Enrolled Senate Bill 1501 (SB 1501-B)  Page 5