71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
 
                            Enrolled
 
                         House Bill 2572
 
Sponsored by Representative WITT (at the request of Verizon)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to telecommunications utilities; amending ORS 759.315.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1. ORS 759.315 is amended to read:
  759.315. (1) A telecommunications utility may issue stocks and
bonds, notes and other evidences of indebtedness, and securities
for the following purposes and no others, except as otherwise
permitted by subsection (4) of this section:
  (a) The acquisition of property, or the construction,
completion, extension or improvement of its facilities.
  (b) The improvement or maintenance of its service.
  (c) The discharge or lawful refunding of its obligations.
  (d) The reimbursement of money actually expended from income or
from any other money in the treasury of the telecommunications
utility not secured by or obtained from the issue of stocks or
bonds, notes or other evidences of indebtedness, or securities of
such telecommunications utility, for any of the purposes listed
in paragraphs (a) to (c) of this subsection except the
maintenance of service and replacements, in cases where the
applicant has kept its accounts and vouchers for such
expenditures in such manner as to enable the Public Utility
Commission to ascertain the amount of money so expended and the
purposes for which such expenditures were made.
  (e) The compliance with terms and conditions of options granted
to its employees to purchase its stock, if the commission first
finds that such terms and conditions are reasonable and in the
public interest.
  (2) Before issuing such securities, a telecommunications
utility, in addition to the other requirements of law, shall
secure from the commission upon application an order authorizing
such issue, stating:
  (a) The amount of the issue and the purposes to which the issue
or the proceeds thereof are to be applied;
  (b) In the opinion of the commission, the money, property or
labor to be procured or paid for by such issue reasonably is
required for the purposes specified in the order and compatible
with the public interest, which is necessary or appropriate for
or consistent with the proper performance by the applicant of
service as a telecommunications utility, and will not impair its
ability to perform that service; and
  (c) Except as otherwise permitted in the order in the case of
bonds, notes or other evidences of indebtedness, such purposes
 
 
 
Enrolled House Bill 2572 (HB 2572-INTRO)                   Page 1
 
 
 
are not, in whole or in part, reasonably chargeable to operating
expenses or to income.
  (3) This section and ORS 759.310 apply to demand notes but do
not apply to the issuance or renewal of a note or evidence of
indebtedness maturing not more than one year after date of such
issue or renewal.
  (4) Nothing in ORS 759.300 to 759.360 shall prevent issuance of
stock to stockholders as a stock dividend if there has been
secured from the commission an order:
  (a) Finding that the stock dividend is compatible with the
public interest;
  (b) Authorizing such issue and a transfer of surplus to capital
in any amount equal to the par or stated value of the stock so
authorized; and
  (c) Finding that a sum equal to the amount to be so transferred
was expended for the purposes enumerated in subsection (1) of
this section.
  (5) A telecommunications utility that derives
 { - three-fourths - }  { +  one-half + } or more of its gross
revenue from sources outside this state does not require
commission authorization to issue stocks and bonds, notes or
other evidences of indebtedness and any security unless the
commission finds that the authorization requirements of ORS
759.310 and subsection (2) of this section are necessary to:
  (a) Prevent the telecommunications utility from issuing
securities for purposes not permitted under subsection (1) of
this section; or
  (b) Prevent impairment of the telecommunications utility's
ability to provide telecommunications utility services to its
customers in this state. The commission shall adopt rules that
set forth independently determined financial indicators upon
which the commission must base any finding of impaired ability to
provide utility telecommunications services.
                         ----------
 
 
Passed by House February 27, 2001
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate May 15, 2001
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2572 (HB 2572-INTRO)                   Page 2
 
 
 
 
 
Received by Governor:
 
......M.,............., 2001
 
Approved:
 
......M.,............., 2001
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2001
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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