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 738-1
 
                         House Bill 2299
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor John A. Kitzhaber,
  M.D., for Office of the Governor)
 
 
                             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 as
introduced.
 
  Creates School Stabilization Fund. Specifies sources and uses
of fund.
  Takes effect on effective date of constitutional amendment
proposed by House Joint Resolution 5 (2001).
 
                        A BILL FOR AN ACT
Relating to a school stabilization fund; and prescribing an
  effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The School Stabilization Fund is
established in the State Treasury, separate and distinct from the
General Fund. The School Stabilization Fund shall consist of the
following:
  (a) Net proceeds from the Oregon State Lottery that would
otherwise be deposited in an education endowment fund, as
provided in the amendment to section 4 (4), Article XV of the
Oregon Constitution, by House Joint Resolution 5 (2001);
  (b) The amount by which the biennial transfer of moneys from
the State Lottery Fund to the Administrative Services Economic
Development Fund exceeds $600 million, excluding the county
portion of video lottery moneys;
  (c) Any interest income derived from investments of the Common
School Fund that the State Land Board chooses to deposit into the
School Stabilization Fund; and
  (d) Earnings on the moneys in the School Stabilization Fund.
  (2) Moneys in the School Stabilization Fund may be transferred
only as provided in sections 2 and 3 of this 2001 Act.
  (3) At any time the amount of moneys in the School
Stabilization Fund reaches 10 percent of the amount in the
General Fund, transfers to the School Stabilization Fund from the
sources specified in subsection (1) of this section shall stop.
The School Stabilization Fund may continue to retain earnings.
When the amount in the School Stabilization Fund falls below 10
percent of the amount in the General Fund, transfers to the
School Stabilization Fund from the sources specified in
subsection (1) of this section shall resume. + }
  SECTION 2.  { + (1) The State Treasurer shall transfer moneys
from the School Stabilization Fund established by section 1 of
this 2001 Act to the General Fund if the Oregon Department of
Administrative Services forecasts that General Fund revenues to
be received by the state during the current biennium, together
with the beginning General Fund balance for the biennium and
other resources available for general governmental expenses
during the biennium, will be two percent or more below the total
amount of appropriations from the General Fund in the budget
adopted by the Legislative Assembly for the biennium. The
treasurer shall transfer an amount under this subsection that
equals the amount by which appropriations for public primary and
secondary education would be reduced if all General Fund budgets
were reduced by the same percentage in order to deal with the
projected revenue shortfall.
  (2) Moneys transferred to the General Fund under subsection (1)
of this section may be used only to fund public primary and
secondary education at the levels established in the budget
adopted by the Legislative Assembly for the biennium in which the
transfer is made.
  (3) At the end of the biennium in which a transfer is made
under subsection (1) of this section, the treasurer shall
transfer money between the General Fund and the School
Stabilization Fund so that the total amount transferred from the
School Stabilization Fund for the biennium is equal to the amount
needed to fund public primary and secondary education at the
levels established in the budget adopted by the Legislative
Assembly for the biennium in which the transfer is made.
  (4) Moneys transferred to the General Fund under this section
shall not be considered revenues received from General Fund
sources for purposes of ORS 291.349. + }
  SECTION 3. { +  (1) If the last revenue forecast given to the
Legislative Assembly by the Oregon Department of Administrative
Services before adjournment sine die of a regular session
indicates that projected revenues for the biennium beginning July
1 of the year of the regular session would be inadequate, if
allocated proportionally, to fund public primary and secondary
education at the levels established in the budget adopted by the
Legislative Assembly for the biennium ending on June 30 of the
year of the regular session, the Legislative Assembly may refer
to the people for their approval or rejection an Act requiring
the State Treasurer to transfer moneys from the School
Stabilization Fund established by section 1 of this 2001 Act to
the General Fund. The Act shall require transfer of the amount
necessary to fund public primary and secondary education at the
levels established in the budget adopted by the Legislative
Assembly for the biennium ending June 30 of the year of the
regular session during which the measure is referred.
  (2) An Act described in subsection (1) of this section may be
referred only upon approval by three-fifths of the membership of
each house of the Legislative Assembly.
  (3) If an Act described in subsection (1) of this section is
approved by the people, the State Treasurer shall transfer moneys
from the School Stabilization Fund to the General Fund in the
amount specified in the measure. Moneys transferred to the
General Fund under this subsection may be used only to fund
public primary and secondary education at the levels established
in the budget adopted by the Legislative Assembly for the
biennium ending June 30 of the year of the regular session during
which the measure is referred.
  (4) An Act described in subsection (1) of this section shall be
submitted to the people for their approval or rejection at a
special election to be held on the third Tuesday in September
following referral of the measure by the Legislative Assembly,
unless a different date is specifically provided by law.
  (5) Moneys transferred to the General Fund under this section
shall not be considered revenues received from General Fund
sources for purposes of ORS 291.349. + }
 
  SECTION 4.  { + This 2001 Act does not become effective unless
the amendment to section 4, Article XV of the Oregon
Constitution, proposed by House Joint Resolution 5 (2001) is
approved by the people at the next regular general election held
throughout this state. This 2001 Act takes effect on the
effective date of that amendment. + }
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