74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2707
Sponsored by COMMITTEE ON REVENUE
CHAPTER ................
AN ACT
Relating to a reserve fund; declaring an emergency; and providing
for revenue estimate modification that requires approval by a
two-thirds majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) The Oregon Rainy Day Fund is established as
an account in the General Fund.
(2) The Legislative Assembly may appropriate moneys from the
Oregon Rainy Day Fund only if the appropriation is approved by
three-fifths of the members serving in each house of the
Legislative Assembly and the Legislative Assembly finds one of
the following:
(a) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
(b) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
(c) That a quarterly economic and revenue forecast projects
that revenues in the General Fund in the current biennium will be
at least two percent below what the revenues were projected to be
in the revenue forecast on which the legislatively adopted budget
for the current biennium was based.
(3) Once each month, the Oregon Department of Administrative
Services shall calculate the amount of General Fund interest that
is attributable to moneys in the Oregon Rainy Day Fund. Except as
otherwise provided in section 6 of this 2007 Act, the department
shall transfer the amount calculated under this subsection to the
Oregon Rainy Day Fund.
(4) The Legislative Assembly may not appropriate for any one
biennium more than two-thirds of the amount that is in the Oregon
Rainy Day Fund at the beginning of that biennium. If the
appropriation is for a biennium that has not yet begun, the
Legislative Assembly may use as the base the most recent estimate
of the amount that will be in the Oregon Rainy Day Fund at the
beginning of the biennium for which the appropriation is made.
(5) As used in this section, 'legislatively adopted budget '
has the meaning given that term in ORS 291.002. + }
SECTION 2. { + Pursuant to section 14 (6)(a), Article IX of
the Oregon Constitution, the Legislative Assembly increases the
amount of the estimate of revenues that will be received from
Enrolled House Bill 2707 (HB 2707-C) Page 1
corporate income and excise taxes for the biennium beginning July
1, 2005, to $975 million. + }
SECTION 3. { + (1) Except as provided in subsection (2) of
this section, any positive difference between the actual amount
of revenues collected from corporate income and excise taxpayers
for the biennium beginning July 1, 2005, and the estimate made
for that biennium pursuant to section 14 (1), Article IX of the
Oregon Constitution, shall be distributed as follows:
(a) The amount of $24.8 million shall be deposited in the
General Fund; and
(b) The remainder shall be deposited in the Oregon Rainy Day
Fund established by section 1 of this 2007 Act.
(2) If the actual amount of revenues collected from corporate
income and excise taxpayers for the biennium beginning July 1,
2005, exceeds the amount of the estimate made in section 2 of
this 2007 Act by two percent or more:
(a) The difference between the actual amount of revenues and
the estimate made in section 2 of this 2007 Act shall be returned
to corporate income and excise taxpayers in the manner provided
in ORS 291.349; and
(b) The difference between the estimate of revenues made in
section 2 of this 2007 Act and the estimate made for the biennium
beginning July 1, 2005, pursuant to section 14 (1), Article IX of
the Oregon Constitution, shall be distributed as follows:
(A) The amount of $24.8 million shall be deposited in the
General Fund; and
(B) The remainder shall be deposited in the Oregon Rainy Day
Fund established by section 1 of this 2007 Act. + }
SECTION 4. { + (1) As used in this section:
(a) 'Ending balance' means the difference between the amount of
General Fund revenues collected during a biennium and the amount
of General Fund appropriations for the biennium.
(b) 'General Fund appropriations' means the amount of moneys
appropriated from the General Fund for a biennium in the
legislatively approved budget for the biennium, minus the amount
of any General Fund appropriation balances for that biennium that
revert to the General Fund under ORS 293.190.
(c) 'Legislatively approved budget' has the meaning given that
term in ORS 291.002.
(2) Except as provided in section 6 of this 2007 Act, as soon
as possible after the ending balance for a biennium is
determined, an amount equal to one percent of the amount of
General Fund appropriations for that biennium shall be
transferred to the Oregon Rainy Day Fund established by section 1
of this 2007 Act. If the ending balance does not equal or exceed
one percent of the amount of General Fund appropriations, an
amount equal to the ending balance shall be transferred to the
Oregon Rainy Day Fund. + }
SECTION 5. { + Section 4 of this 2007 Act applies to ending
balances for biennia beginning on or after July 1, 2007. + }
SECTION 6. { + (1) If the moneys in the Oregon Rainy Day Fund
established by section 1 of this 2007 Act just prior to the time
of a transfer scheduled under section 1 (3) or 4 of this 2007 Act
equal at least 7-1/2 percent of the amount of General Fund
revenues collected during the prior biennium, moneys that would
otherwise be transferred to the Oregon Rainy Day Fund shall be
deposited in the General Fund.
(2) If the moneys in the Oregon Rainy Day Fund just prior to
the time of a transfer scheduled under section 1 (3) or 4 of this
2007 Act do not equal at least 7-1/2 percent of the amount of
Enrolled House Bill 2707 (HB 2707-C) Page 2
General Fund revenues collected during the prior biennium, the
transfer to the Oregon Rainy Day Fund shall be made regardless of
whether that transfer increases the amount in the Oregon Rainy
Day Fund to at least 7-1/2 percent of the amount of General Fund
revenues collected during the prior biennium. + }
SECTION 7. { + Sections 1 to 6 of this 2007 Act do not become
operative unless B-engrossed House Bill 2031 is passed by both
houses of the Legislative Assembly and signed by the Governor on
or before March 16, 2007. + }
SECTION 8. { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect May 1,
2007. + }
----------
Passed by House March 8, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 15, 2007
...........................................................
President of Senate
Enrolled House Bill 2707 (HB 2707-C) Page 3
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2707 (HB 2707-C) Page 4