73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
Senate Bill 5
Sponsored by Senator COURTNEY
CHAPTER ................
AN ACT
Relating to state finance; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 2005 Act are added to
and made a part of ORS chapter 286. + }
SECTION 2. { + As used in sections 2 to 8 of this 2005 Act,
unless the context requires otherwise:
(1) 'Article XI-N bonds' means general obligation bonds or
other general obligation indebtedness issued or incurred under
the authority of Article XI-N of the Oregon Constitution.
(2) 'Bond administration fund' means the Article XI-N Bond
Administration Fund established under section 5 of this 2005 Act.
(3) 'Bond fund' means the Article XI-N Bond Fund established
under section 4 of this 2005 Act.
(4) 'Bond-related costs' means:
(a) The costs of paying the principal of, the interest on and
the premium, if any, on Article XI-N bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-N bonds including, but not limited to,
redeeming Article XI-N bonds and paying amounts due in connection
with bond insurance, other credit enhancements or the
administrative costs and expenses of the State Treasurer and the
Oregon Department of Administrative Services, including costs of
consultants or advisers retained by the State Treasurer or the
department for the purpose of issuing, administering or
maintaining Article XI-N bonds;
(c) Capitalized interest on Article XI-N bonds;
(d) Costs of funding reserves for Article XI-N bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-N bonds; and
(f) Other costs or expenses that the Director of the Oregon
Department of Administrative Services determines are necessary or
desirable in connection with issuing, administering or
maintaining Article XI-N bonds.
(5) 'Seismic fund' means the Emergency Services Seismic Fund
established under section 6 of this 2005 Act.
(6) 'State share of costs' means the total costs and related
expenses of the seismic rehabilitation of emergency services
buildings, minus contributions for seismic rehabilitation from
the applicants as required by the Office of Emergency
Management. + }
Enrolled Senate Bill 5 (SB 5-B) Page 1
SECTION 3. { + (1) Article XI-N bonds are a general obligation
of the State of Oregon and must contain a direct promise on
behalf of the State of Oregon to pay the principal of, the
interest on and the premium, if any, on the Article XI-N bonds.
The State of Oregon shall pledge its full faith and credit and
taxing power to pay Article XI-N bonds, except that the ad
valorem taxing power of the State of Oregon may not be pledged to
pay Article XI-N bonds.
(2) The State Treasurer, with the concurrence of the Director
of the Oregon Department of Administrative Services, may issue
Article XI-N bonds:
(a) Subject to the limit on bond issuance established for the
particular biennium in ORS 286.505 to 286.545 and at the request
of the Director of the Office of Emergency Management, for the
purpose of financing all or a portion of the state share of costs
to plan and implement seismic rehabilitation of emergency
services buildings in the amount of the state share of costs,
plus an amount determined by the State Treasurer to pay estimated
bond-related costs.
(b) To refund Article XI-N bonds. The amount of Article XI-N
bonds issued under this paragraph may not exceed the estimated
costs of paying, redeeming or defeasing the refunded bonds, plus
an amount determined by the State Treasurer to pay estimated
bond-related costs.
(3) The State Treasurer shall transfer the net proceeds of
Article XI-N bonds issued for the purpose described in subsection
(2)(a) of this section to the Office of Emergency Management for
deposit in the Emergency Services Seismic Fund established under
section 6 of this 2005 Act. + }
SECTION 4. { + (1) The Article XI-N Bond Fund is established
in the State Treasury, separate and distinct from the General
Fund. Amounts in the bond fund may be invested as provided in
ORS 293.701 to 293.820, and interest earned on the bond fund must
be credited to the bond fund. Amounts credited to the bond fund
are continuously appropriated to the Oregon Department of
Administrative Services for the purpose of paying, when due, the
principal of, the interest on and the premium, if any, on
outstanding Article XI-N bonds. The department shall deposit in
the bond fund:
(a) Capitalized or accrued interest on Article XI-N bonds;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond fund; and
(c) Reserves established for the payment of Article XI-N bonds.
(2) The department may create separate accounts in the bond
fund for reserves and debt service for each series of Article
XI-N bonds. + }
SECTION 5. { + (1) The Article XI-N Bond Administration Fund
is established in the State Treasury, separate and distinct from
the General Fund. Amounts in the bond administration fund may be
invested as provided in ORS 293.701 to 293.820, and interest
earned on the bond administration fund must be credited to the
bond administration fund. Amounts credited to the bond
administration fund are continuously appropriated to the Oregon
Department of Administrative Services for payment of bond-related
costs. The department shall credit to the bond administration
fund:
(a) Proceeds of Article XI-N bonds that were issued to pay
bond-related costs;
Enrolled Senate Bill 5 (SB 5-B) Page 2
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond administration fund;
and
(c) Amounts transferred from the Emergency Services Seismic
Fund by the Office of Emergency Management as provided in section
6 of this 2005 Act.
(2) The department may create separate accounts in the bond
administration fund. + }
SECTION 6. { + (1) The Emergency Services Seismic Fund is
established in the State Treasury, separate and distinct from the
General Fund. Amounts in the seismic fund may be invested as
provided in ORS 293.701 to 293.820, and interest earned on the
seismic fund must be credited to the seismic fund. Amounts
credited to the seismic fund are continuously appropriated to the
Office of Emergency Management for the purpose described in
section 3 (2)(a) of this 2005 Act and for the purpose of paying
bond-related costs. The office shall deposit in the seismic fund:
(a) The net proceeds of Article XI-N bonds transferred pursuant
to section 3 (3) of this 2005 Act;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the seismic fund;
(c) Gifts, grants or contributions received by the office for
the purpose described in section 3 (2)(a) of this 2005 Act; and
(d) Moneys received as repayment of, as a return on or in
exchange for the grant or loan of net proceeds of Article XI-N
bonds.
(2) The office may create separate accounts in the seismic fund
as appropriate for the management of moneys in the seismic fund.
(3) The office and any other state agency or other entity
receiving or holding net proceeds of Article XI-N bonds shall, at
the direction of the Oregon Department of Administrative
Services, take action necessary to maintain the excludability of
interest on Article XI-N bonds from gross income under the
Internal Revenue Code.
(4) The office shall transfer to the Article XI-N Bond
Administration Fund the unexpended and uncommitted amounts
remaining in the seismic fund if:
(a) Unexpended funds that are not contractually committed to a
particular purpose remain in the seismic fund on the last day of
the biennium; and
(b) Article XI-N bonds will be outstanding in the next
biennium.
(5) The office may adopt rules to carry out this section
including, but not limited to, establishing:
(a) Required contributions from applicants;
(b) Fees;
(c) Standards, terms and conditions under which moneys in the
seismic fund may be granted, loaned or otherwise made available;
and
(d) Procedures for distributing and monitoring the use of
moneys from the seismic fund. + }
SECTION 7. { + (1) In accordance with the applicable
provisions of this chapter and ORS chapter 288, Article XI-N
bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable or excludable from gross
income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of Article XI-N
Enrolled Senate Bill 5 (SB 5-B) Page 3
bonds in series, the maturity of each series and the interest
borne by each series of Article XI-N bonds.
(2) Subject to the approval of the State Treasurer, the
Director of the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a
line of credit, surety bonds or another credit enhancement device
for Article XI-N bonds; and
(b) Enter into related agreements. + }
SECTION 8. { + For each biennium in which Article XI-N bonds
will be outstanding, the Oregon Department of Administrative
Services shall include in the Governor's budget request to the
Legislative Assembly an amount that, when added to the amount on
deposit in the Article XI-N Bond Fund and the Article XI-N Bond
Administration Fund, is sufficient to pay the bond-related costs
that are scheduled to come due in the biennium. + }
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Passed by Senate July 30, 2005
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House August 5, 2005
...........................................................
Speaker of House
Enrolled Senate Bill 5 (SB 5-B) Page 4
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled Senate Bill 5 (SB 5-B) Page 5