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 3113
House Bill 3370
Sponsored by Representative PATRIDGE; Representatives BACKLUND,
DEVLIN, HASS, RINGO, WESTLUND, WIRTH (at the request of State
Treasurer Randall Edwards, Oregon Education Association, Oregon
Health Sciences University, Oregon School Boards Association,
Ozzie Rose)
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.
Allows State Treasurer to issue general obligation bonds to
finance public school facilities costs. Requires that moneys from
bonds be used for public school facilities costs that reduce
class size or to match local property tax revenues that are
raised for public school facilities costs. Provides for payment
of bonds from moneys appropriated or allocated.
Establishes School Facility Fund.
Appropriates moneys from General Fund to Department of
Education to pay indebtedness and interest incurred from issuing
bonds.
Takes effect when amendment to Oregon Constitution proposed by
House Joint Resolution 46 (2001) is approved by people at next
regular general election.
A BILL FOR AN ACT
Relating to school finance; appropriating money; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 6 of this 2001 Act, '
public school facilities costs' means those costs associated with
providing kindergarten through grade 12 public school facilities
as described in Article XI-L of the Oregon Constitution and
includes costs associated with the acquisition, construction,
improvement, remodeling, maintenance or repair of public school
facilities in this state, including land, site preparation costs,
capital improvements, permanent or portable buildings and
equipment. + }
SECTION 2. { + In order to provide funds for public school
facilities costs as specified in Article XI-L of the Oregon
Constitution, the State Treasurer may issue general obligation
bonds in accordance with the provisions of ORS 286.031 to
286.061. + }
SECTION 3. { + Moneys arising from the sale of each issue of
general obligation bonds under section 2 of this 2001 Act shall
be paid into the State Treasury and credited to the School
Facility Fund and shall be used exclusively for public school
facilities costs. Moneys acquired under section 2 of this 2001
Act shall be in addition to and not in lieu of moneys regularly
appropriated or otherwise made available to the Department of
Education. + }
SECTION 4. { + (1) The Department of Education shall
distribute moneys in the School Facility Fund to school districts
in the form of grants. School districts may use any moneys
received under this section:
(a) For public school facilities costs related to projects to
reduce class sizes; and
(b) To match local property tax revenues that are raised for
public school facilities costs.
(2) The State Board of Education shall adopt criteria for
distributing grants to school districts.
(3) Grant criteria shall include consideration, when awarding
grants to match local revenues under subsection (1)(b) of this
section, of the assessed value of the property of the school
district. The amount of any grant to match local revenues may not
be:
(a) More than 50 percent of the total public school facilities
costs of the project; or
(b) Less than 25 percent of the total public school facilities
costs of the project.
(4) The State Board of Education may adopt rules and take any
other action necessary to meet the requirements of sections 1 to
6 of this 2001 Act. + }
SECTION 5. { + There is established in the State Treasury the
School Facility Fund separate and distinct from the General Fund.
All moneys in the School Facility Fund are appropriated
continuously to the Department of Education for purposes of
sections 1 to 6 of this 2001 Act. + }
SECTION 6. { + (1) There is established a sinking fund account
to provide for the payment of the principal and interest of all
general obligation bonds issued pursuant to sections 1 to 6 of
this 2001 Act. The account shall consist of moneys appropriated
or allocated to the account by the Legislative Assembly.
(2) The moneys in the sinking fund account shall be set aside
for sinking fund purposes until the issues of bonds that provided
the moneys have been retired.
(3) Disbursements from the sinking fund account shall be made,
for the purposes stated, upon the submission of duly verified
claims approved by the State Board of Education to the Secretary
of State, who shall audit the claims in the manner that other
claims against this state are audited. The Oregon Department of
Administrative Services shall draw a warrant on the State
Treasury for payment of the amounts of the claims out of the
sinking fund account. Moneys in the sinking fund account may be
invested as provided in ORS 293.701 to 293.820. + }
SECTION 7. { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Education sinking fund account established under section 6 of
this 2001 Act, for the biennium beginning July 1, 2001, out of
the General Fund, the sum of $100 million, which may be expended
for the payment of the principal and interest of all general
obligation bonds issued pursuant to sections 1 to 6 of this 2001
Act. + }
SECTION 8. { + This 2001 Act does not become effective unless
the amendment to the Oregon Constitution proposed by House Joint
Resolution 46 (2001) is approved by the people at the next
regular general election held throughout this state. This 2001
Act becomes effective on the effective date of House Joint
Resolution 46 (2001). + }
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