71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to HB 3382
LC 2275/HB 3382-3
HOUSE AMENDMENTS TO
HOUSE BILL 3382
By COMMITTEE ON SCHOOL FUNDING AND TAX FAIRNESS/REVENUE
May 4
On page 1 of the printed bill, delete lines 4 through 29 and
delete pages 2 and 3 and insert:
' { + SECTION 1. + } { + Sections 2, 3, 4, 5 and 6 of this
2001 Act are added to and made a part of ORS chapter 238. + }
' { + SECTION 2. + } { + As used in sections 2 to 6 of this
2001 Act:
' (1) 'Governmental unit' has the meaning given that term in
ORS 288.150, and includes an agency created by two or more
political subdivisions pursuant to ORS 190.003 to 190.130 or
190.265.
' (2) 'Pension liability' means:
' (a) Monetary obligations of a participating public employer
for which the employer is or will be required to transmit amounts
to the Public Employees Retirement Board under the provisions of
ORS 238.225, including any obligations arising out of an
integration contract under ORS 238.680, or any other liability of
a governmental unit that is attributable to an obligation to pay
pensions or other retirement benefits to officers or employees of
the governmental unit, whether active or retired; and
' (b) Monetary obligations of a public employer arising out of
an integration contract under ORS 238.680 for which the employer
is required to transmit amounts to the Public Employees
Retirement Board.
' (3) 'State agency' means any officer, board, commission,
department, division or institution in the administrative branch
of state government. + }
' { + SECTION 3. + } { + (1) The Legislative Assembly finds
that authorizing issuance of limited tax bonds or revenue bonds
to finance pension liabilities may reduce the cost of public
pensions to taxpayers and that the reduction of those costs to
taxpayers is a matter of statewide concern.
' (2) Notwithstanding any limitation on indebtedness or
borrowing under state or local law, for the purpose of obtaining
funds to pay the pension liability of a governmental unit, the
governing body of a governmental unit may authorize and cause the
issuance of limited tax bonds as defined in ORS 288.150, revenue
bonds authorized by charter or pursuant to ORS 288.805 to
288.945, or any combination of those bonds. The governing body of
a governmental unit may pledge the full faith and credit and
taxing power of the governmental unit to the payment of the
principal and interest on bonds issued under sections 2 to 6 of
this 2001 Act, and any premium on those bonds.
' (3) Limited tax bonds authorized under this section must be
issued in the manner prescribed by ORS chapters 287 and 288 for
the issuance of limited tax bonds. A county may not issue limited
tax bonds under this section for an amount that exceeds five
percent of the real market value of the taxable property within
the boundaries of the county.
' (4) Revenue bonds authorized under this section need not
comply with the procedure specified in ORS 288.815.
' (5) A governmental unit that issues limited tax bonds or
revenue bonds under this section may also issue limited tax bonds
or revenue bonds for the purpose of refunding the bonds.
' (6) A governmental unit may enter into indentures or other
agreements with trustees or escrow agents for the issuance,
administration or payment of bonds authorized under this section.
' (7) The state may not issue bonds under the provisions of
this section. + }
' { + SECTION 4. + } { + (1) Governmental units may enter
into intergovernmental agreements for the collective issuance,
administration or payment of bonds authorized under section 3 of
this 2001 Act. An agreement for collective issuance,
administration or payment of bonds under this subsection may
provide for the contribution and pooling of the assets of the
governmental units as security for the bonds, and may make
provisions for such other matters as the governmental units
determine convenient. Notwithstanding ORS 190.080, any
intergovernmental entity created by governmental units under this
section shall have the power to issue bonds as described in
section 3 of this 2001 Act. The bonds may be issued and sold as
parity bonds, issued and sold individually or issued and sold in
such combinations or forms as determined to be appropriate by the
governmental units.
' (2) Proceeds of bonds sold under an intergovernmental
agreement entered into under this section, and any other funds or
assets of a governmental unit, together with interest or earnings
on the proceeds, funds and assets, may be consolidated into one
or more funds or accounts and may be pledged to the holders of
the bonds.
' (3) Governmental units may enter into indentures or other
agreements with trustees or escrow agents for the issuance,
administration or payment of bonds pursuant to an
intergovernmental agreement entered into under this section.
' (4) The State Treasurer may cooperate with, assist and
provide recommendations to governmental units, and any
intergovernmental entity created by governmental units under this
section, relating to all matters involved in the issuance,
administration and payment of bonds. Any expenses incurred by the
State Treasurer in providing assistance to governmental units
under this section may be paid as an administrative expense of
the governmental unit from the proceeds of the bonds issued with
the assistance of the State Treasurer. + }
' { + SECTION 5. + } { + (1) A governmental unit, or a group
of governmental units that enter into an intergovernmental
agreement under section 4 of this 2001 Act, may establish a debt
service trust fund for the purpose of paying the principal and
interest on bonds issued under sections 2 to 6 of this 2001 Act.
The trustee of the debt service trust fund shall hold the moneys
paid into the trust fund solely for the purpose of paying the
principal and interest on bonds issued under sections 2 to 6 of
this 2001 Act and for paying the administrative costs of the
trust fund.
' (2) Moneys held in a debt service trust fund are subject to
the limitations on investment imposed by ORS 294.033 and 294.035.
' (3) A governmental unit, or a group of governmental units
that enter into an intergovernmental agreement under section 4 of
this 2001 Act, that has established a debt service trust fund
under this section may not divert or pledge any moneys paid into
the trust fund for any purpose other than the purpose specified
in subsection (1) of this section until the total amount of
principal and interest on bonds issued by the governmental unit
or under the intergovernmental agreement, and any premium on
those bonds, is paid. + }
' { + SECTION 6. + } { + (1) A governmental unit, or a group
of governmental units that enter into an intergovernmental
agreement under section 4 of this 2001 Act, that receives funds
from any state agency may enter into a funds diversion agreement
with the state agency for the purpose of paying the principal and
interest on bonds issued under sections 2 to 6 of this 2001 Act,
and any premium on those bonds. A diversion agreement entered
into under this section must provide that:
' (a) Moneys payable to the governmental unit or governmental
units by the state agency from appropriations from the General
Fund or any other source of moneys will be paid directly to a
debt service trust fund established under section 5 of this 2001
Act in amounts equal to the debt service owed by the governmental
unit or governmental units;
' (b) The state agency must pay the amounts required under the
funds diversion agreement to the debt service trust fund
established under section 5 of this 2001 Act pursuant to the
schedule specified in the agreement before paying any other
amounts to the governmental unit or governmental units;
' (c) The agreement is irrevocable; and
' (d) The agreement will remain in effect until all the bonds
issued by the governmental unit or under the intergovernmental
agreement are mature or redeemed.
' (2) If for any reason a state agency that has entered into a
funds diversion agreement is not able to pay moneys to a debt
service trust fund as contemplated by the agreement, the state
agency shall give notice to the governmental unit or governmental
units within 30 days after the state agency is aware that the
moneys will not be paid.
' (3) Nothing in this section, or in any funds diversion
agreement entered into by a state agency under this section, may
in any manner obligate the state or any state agency:
' (a) To pay any amount to a governmental unit that the
governmental unit is not otherwise entitled to receive under law;
or
' (b) To pay any principal or interest on bonds issued under
sections 2 to 6 of this 2001 Act. + } ' .
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