Relating to bond administration; creating new provisions; amending ORS 285B.344, 285B.473, 285B.575, 286.036, 286.066, 289.200, 348.716 and 367.025; appropriating money; and declaring an emergency.

 
 
 
     71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1166
 
                           A-Engrossed
 
                         House Bill 2121
                Ordered by the House February 14
          Including House Amendments dated February 14
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of State Treasurer Jim Hill)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Authorizes state agency issuing certain bonds to designate
trustee with approval of State Treasurer. Authorizes appointment
of bond counsel by state agency issuing certain bonds or by State
Treasurer. Modifies period over which interest on certain bonds
may be capitalized.
  Provides that moneys in Oregon Education Fund are continuously
appropriated to Oregon Department of Administrative Services for
public education and education lottery bond debt service.
   { +  Declares emergency, effective on passage. + }
 
                        A BILL FOR AN ACT
Relating to bond administration; creating new provisions;
  amending ORS 285B.344, 285B.473, 285B.575, 286.036, 286.066,
  289.200, 348.716 and 367.025; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 285B.344 is amended to read:
  285B.344. (1) If the State Treasurer determines that bonds
should be issued:
  (a) The State Treasurer may authorize and issue in the name of
the State of Oregon bonds secured by revenues from eligible
economic development projects or from other financing sources,
and where applicable, secured as provided in ORS 285B.374 and
285B.377, to finance or refinance in whole or part the cost of
acquisition, construction, reconstruction, improvement or
extension of projects. The bonds shall be identified by project
and issued in the manner prescribed by ORS 286.010, 286.020 and
286.105 to 286.135, and refunding bonds may be issued to
refinance such bonds.
  (b) The State Treasurer shall designate the underwriter,
  { - trustee, bond counsel, - }  vendor, lender or other
financing party, if any, and enter into appropriate agreements
with each to carry out the provisions of ORS 285B.320 to
285B.377.  { + The Economic and Community Development Department,
with the approval of the State Treasurer, shall designate the
trustee and enter into appropriate agreements with the trustee to
carry out the provisions of ORS 285B.320 to 285B.377. The
department may appoint bond counsel as authorized by ORS 288.523,
or the State Treasurer may enter into an agreement with bond
counsel if the services provided under the agreement comply with
the provisions of ORS 288.523 and the appointment is approved by
the Attorney General as required by ORS 288.523. + }
  (2) Any escrow agent, bond registrar, paying agent or trustee,
if any, designated by the State Treasurer to carry out all or
part of the powers specified in ORS 285B.335 must agree to
furnish financial statements and audit reports for each bond
issue.
  SECTION 2. ORS 285B.473 is amended to read:
  285B.473. If the State Treasurer determines that revenue bonds
should be issued:
  (1) The State Treasurer may authorize and issue in the name of
the State of Oregon revenue bonds secured by moneys paid to the
Special Public Works Fund pledged therefor to finance or
refinance in whole or part the cost of acquisition, construction,
reconstruction, improvement or extension of infrastructure
projects. The bonds shall be issued in the manner prescribed by
ORS chapter 286, and refunding bonds may be issued to refinance
such revenue bonds.
  (2) The State Treasurer shall designate the underwriter  { - ,
trustee and bond counsel - }  and enter into appropriate
agreements with   { - each - }   { + the underwriter + } to carry
out the provisions of ORS 285B.467 to 285B.479.  { + The Economic
and Community Development Department, with the approval of the
State Treasurer, shall designate the trustee and enter into
appropriate agreements with the trustee to carry out the
provisions of ORS 285B.467 to 285B.479. The department may
appoint bond counsel as authorized by ORS 288.523, or the State
Treasurer may enter into an agreement with bond counsel if the
services provided under the agreement comply with the provisions
of ORS 288.523 and the appointment is approved by the Attorney
General as required by ORS 288.523. + }
  SECTION 3. ORS 285B.575 is amended to read:
  285B.575. If the State Treasurer determines that revenue bonds
shall be issued:
  (1) The State Treasurer may authorize and issue in the name of
the State of Oregon revenue bonds secured by moneys paid to the
Water Fund and pledged to finance or refinance in whole or in
part the cost of a water project. The revenue bonds issued under
this section shall be issued in the manner prescribed by ORS
chapter 286, and refunding bonds may be issued to refinance the
revenue bonds.
  (2) The State Treasurer shall designate and enter into
agreements with the underwriter  { - , trustee and bond
counsel - }  to carry out the provisions of ORS 285B.560 to
285B.599.  { + The Economic and Community Development Department,
with the approval of the State Treasurer, shall designate the
trustee and enter into appropriate agreements with the trustee to
carry out the provisions of ORS 285B.560 to 285B.599. The
department may appoint bond counsel as authorized by ORS 288.523,
or the State Treasurer may enter into an agreement with bond
counsel if the services provided under the agreement comply with
the provisions of ORS 288.523 and the appointment is approved by
the Attorney General as required by ORS 288.523. + }
  SECTION 4. ORS 286.036 is amended to read:
  286.036. (1) The  { + state + } agency, with the approval of
the State Treasurer, shall determine the maximum interest to be
borne by the bonds, the interest basis and definition thereof.
The maximum effective interest rate shall be certified to the
State Treasurer as prudent in light of prevailing interest rates,
market conditions and the projected program revenues, if any, and
the State Treasurer must approve or disapprove.
  (2)  { + The state agency, with the approval of the State
Treasurer, shall determine the period over which + } interest on
bonds may be capitalized   { - for 18 months or the estimated
period of construction, whichever is less - } . { +  The period
may not be longer than the estimated period of construction. + }
  (3) The interest upon all bonds, including refunding bonds, of
the State of Oregon, shall be exempt from taxation by the State
of Oregon.
  (4) A state agency authorized to issue or cause to be issued
any general obligation, revenue or industrial development bonds
must apply for and receive approval of the State Treasurer prior
to issuance of bonds. The approval must include approval of the
preliminary official statement, if any, the specific amount of
the bonds to be issued and the date of issuance. The State
Treasurer may reduce the amount or alter the date of issuance, or
both. ORS 286.056 and 286.061 (1) do not apply to revenue or
industrial development bonds described in this section.
  SECTION 5. ORS 286.066 is amended to read:
  286.066. With the approval of the State Treasurer { +  and with
the approval of the Attorney General as required by ORS
288.523 + }, each respective general obligation bonding
 { + state + } agency shall provide for the appointment of bond
counsel for a period of not less than one year during any
biennium in which the  { + state + } agency has bonds outstanding
or expects to issue bonds.
  SECTION 6. ORS 289.200 is amended to read:
  289.200. (1) If the State Treasurer determines that revenue
bonds should be issued:
  (a) The State Treasurer may authorize and issue in the name of
the State of Oregon revenue bonds secured by revenues from
eligible projects to finance or refinance in whole or part the
cost of acquisition, purchase, construction, reconstruction,
installations improvement, betterment or extension of projects.
The bonds shall be identified by project and issued in the manner
prescribed by ORS 286.010, 286.020 and 286.105 to 286.135, and
refunding bonds may be issued to refinance such revenue bonds.
  (b) The State Treasurer shall designate the underwriter,
trustee and bond counsel, if any, and enter into appropriate
agreements with each to carry out the provisions of this chapter.
 { +  An agreement with bond counsel designated by the State
Treasurer under this section is subject to the provisions related
to services provided by bond counsel under ORS 288.523, and the
appointment must be approved by the Attorney General as required
by ORS 288.523. + }
  (2) Any trustee designated by the State Treasurer to carry out
all or part of the powers specified in ORS 289.110 must agree to
furnish financial statements and audit reports for each bond
issue.
  (3) The State Treasurer shall be the applicable elected
representative for purposes of approving the issuance of revenue
bonds under this chapter as to the extent such approval is
required under section 147(f) of the Internal Revenue Code of
1986, as amended, or any successor provision thereto.
  (4) The State Treasurer shall collect data from the Health,
Housing, Educational and Cultural Facilities Authority regarding
the amount and nature of bonded indebtedness in Oregon health
care institutions financed through the authority.
  SECTION 7. ORS 367.025 is amended to read:
  367.025. (1) If the Department of Transportation determines
that it is necessary or desirable to issue infrastructure bonds
to provide moneys for the Oregon Transportation Infrastructure
Fund, the department shall ask the State Treasurer to issue
infrastructure bonds.
  (2) When the department asks the State Treasurer to issue
infrastructure bonds, if the State Treasurer determines that
infrastructure bonds shall be issued:
  (a) The State Treasurer may authorize and issue infrastructure
bonds to provide moneys for the infrastructure fund.
  (b) The State Treasurer may enter into   { - agreement - }
 { + agreements + } with bond underwriters, trustees, financial
advisers  { - , bond counsel - }  and other persons to carry out
ORS 367.010 to 367.060.   { +  The department may appoint bond
counsel as authorized by ORS 288.523, or the State Treasurer may
enter into an agreement with bond counsel if the services
provided under the agreement comply with the provisions of ORS
288.523 and the appointment is approved by the Attorney General
as required by ORS 288.523. + }
  SECTION 8. ORS 348.716 is amended to read:
  348.716. The Oregon Education Fund is established in the State
Treasury, separate and distinct from the General Fund.   { +
Moneys in the Oregon Education Fund are continuously appropriated
to the Oregon Department of Administrative Services for public
education and education lottery bond debt service. + }
Seventy-five percent of the net available earnings on amounts in
all accounts of the Education Endowment Fund shall be transferred
monthly to the Oregon Education Fund as directed by the Director
of the Oregon Department of Administrative Services. Investment
earnings on amounts in the Oregon Education Fund shall be
credited to the Oregon Education Fund.   { - Amounts in the
Oregon Education Fund shall be used only for public
education. - }  The Legislative Assembly may, but shall be under
no legal obligation to, allocate and appropriate amounts in the
Oregon Education Fund to pay education lottery bonds. The
Director of the Oregon Department of Administrative Services may
specify when during any fiscal year amounts shall be transferred
from the Oregon Education Fund to be used for public education
 { - , including transfers to pay - }   { + or + } education
lottery bonds.
  SECTION 9.  { + The amendments to ORS 285B.344, 285B.473,
285B.575, 286.036, 286.066, 289.200 and 367.025 by sections 1 to
7 of this 2001 Act apply to bonds issued on or after the
effective date of this 2001 Act. + }
  SECTION 10.  { + This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2001 Act takes effect on
its passage. + }
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