(a) Manage those grounds and parking structures or facilities located in the capitol area of the City of Salem that the state owns or that any state agency leases or is acquiring through lease purchase or installment purchase agreement; and

(b) Determine the conditions under which such grounds and parking structures or facilities may be used.

(2) The grounds and parking structures or facilities described in subsection (1) of this section include those located either adjacent to, on or in close proximity to, though not necessarily contiguous to, leased office quarters defined in ORS 276.420, the Supreme Court Building, the buildings, properties or parking structures described in ORS 276.004 and those grounds the state owns by and through the department that are adjacent to the installations and facilities located in the area described in ORS 276.054.

(3) This section does not apply to the State Capitol, to the parking facilities located in the garage of the State Capitol, to the area immediately north of the State Capitol but south of and separated from Court Street by a traffic island, painted markings or other traffic control devices or to the area immediately south of the State Capitol but north of and separated from State Street by a traffic island, painted markings or other traffic control devices.

(4) The department may not exercise the authority described in this section over grounds and parking structures or facilities located outside the capitol area in the City of Salem that the state owns or that another state agency leases or is acquiring through lease purchase or installment purchase.

(5) Based upon its findings, the department shall adopt rules for parking motor vehicles or for other transportation uses of the grounds and parking structures or facilities described in subsection (1) of this section. Notice of the rules shall be given by appropriate signs posted on the grounds and in the parking structures or facilities. In adopting the rules, the department shall consider the state policy stated in ORS 276.591.

(6) The department may lease portions of the grounds and parking structures or facilities described in subsection (1) of this section for parking motor vehicles and for other transportation uses as it determines are appropriate. However, in such leasing, priority shall first be given to the needs of state officers and employees.

(7) The department shall furnish a space without charge to each statewide elective officer, except those with offices in the State Capitol, and shall designate certain spaces, either free or metered, for use by persons transacting business in state offices. The department may also provide free parking for employees with disabilities who have been issued a disabled person parking permit by the Department of Transportation and who require the use of their vehicle in traveling to and from work. Any spaces not required for leasing to state officers and employees, or for other authorized purposes, may be leased to other persons.

(8) The department shall retain receipts obtained under this section, except that the department may return to the appropriate agency any net receipts obtained from any parking structures or facilities that are located in the capitol area in the City of Salem and that the state owns or that any agency other than the department leases or is acquiring through lease purchase or installment purchase agreement.

(9) As used in this section, "capitol area" has the meaning given that term in ORS 276.010. [1977 c.598 §25; 1981 c.591 §2; 1989 c.224 §38; 1991 c.67 §67; 2005 c.217 §22; 2007 c.70 §60; 2007 c.175 §2]