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 3703
A-Engrossed
House Bill 3902
Ordered by the House May 23
Including House Amendments dated May 23
Sponsored by Representative DOYLE; Representatives MINNIS, C
WALKER
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.
Imposes requirements and limitations for issuance of local
government general obligation bonds.
{ - Provides that amount included as contingency reserve for
project or expenditure financed under bonds may not exceed 15
percent of estimated cost of project or expenditure. - }
Requires that order calling election and ballot title must
contain { - clear and unambiguous - } statement of specific
projects and
{ - expenditures - } { + uses + } that bond proceeds will be
used to fund.
Requires that proceeds of bond sale not used for project
{ - or expenditure - } { + or uses funded by bonds + } must be
used for payment { - , - } { + of principal, interest or costs
of issuing bonds or + } redemption or purchase of bonds.
A BILL FOR AN ACT
Relating to local government bonds; creating new provisions; and
amending ORS 287.012, 287.056, 287.070 and 288.815.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 287.012 is amended to read:
287.012. (1) Notwithstanding any other provision of law, when
bonds, obligations or other evidence of indebtedness issued by
any district, authority or public corporation after August 9,
1961, are sold the proceeds may be used to pay attorney fees and
other expenses incurred in the preparation, authorization,
issuance and sale of, and in all proceedings relating to, such
bonds, obligations or other evidence of indebtedness.
(2) When bonds are sold, the proceeds received in excess of the
principal shall be placed with the principal in the improvement
fund for which the bonds were issued or in a debt service fund to
repay the bond.
{ + (3) Notwithstanding the authorization under ORS 287.006
(3) to transfer a surplus in a debt service fund, the proceeds
from the sale of the bonds that are not used for the project or
uses funded by the bonds must be used for the payment of
principal, interest and the costs of issuing the bonds or for the
redemption or purchase of the bonds. Proceeds may not be
transferred from a debt service fund for any other use or
purpose. + }
SECTION 2. ORS 287.056 is amended to read:
287.056. (1) After the public hearing required by ORS 287.055,
if the governing body decides to proceed with the proposal it
shall submit the question of issuing and selling bonds at an
election on a date specified in ORS 203.085. The order calling
the election shall set forth:
(a) { - The use to which the proceeds of the bonds are to be
put - } { + A statement of the specific projects and uses that
the bond proceeds will be used to fund + }.
(b) That the bonds shall be general obligation bonds of the
county.
(c) The amount of bonds proposed to be issued.
(d) The length of time, not to exceed 30 years, during which
the bonds shall mature.
(2) The governing body shall file with the county clerk a
notice of an election called under this section not later than
the 61st day before the election.
(3) The statement summarizing the measure and its major effect
in the ballot title shall include the information required in
subsection (1) of this section.
SECTION 3. ORS 287.070 is amended to read:
287.070. The proceeds of the sale of the bonds shall be paid to
the county treasurer and shall be placed in a special fund which
shall be used only for the particular purpose or purposes for
which the bond proceeds are to be used as specified in the order
calling for an election upon the question of issuance of the
bonds and for no other purpose. { - However, the - } Proceeds
from the sale of the bonds { - may - } { + that are not used
for the project or uses funded by the bonds must + } be used for
the payment of principal and interest of such bonds or for the
redemption or purchase of these bonds.
SECTION 4. { + Section 5 of this 2001 Act is added to and made
a part of ORS 288.515 to 288.600. + }
SECTION 5. { + If a municipality that is authorized to issue
bonds by any law conducts an election to obtain elector approval
for the issuance of bonds, the order or resolution calling the
election must set forth:
(1) A statement of the specific projects and uses that the bond
proceeds will be used to fund.
(2) The dollar amount of the bonds proposed to be issued.
(3) The length of time during which the bonds mature. + }
SECTION 6. ORS 288.815 is amended to read:
288.815. (1) A municipality, upon adoption of a resolution or
an ordinance authorizing the issuance of bonds in accordance with
subsections (1) to { - (7) - } { + (8) + } of this section,
may issue revenue bonds authorized by ORS 288.805 to 288.945.
(2) The authorizing resolution or ordinance must provide that
no bonds may be sold, or in the case of a private negotiated
sale, no purchase agreement can be executed, for at least 60 days
following publication of the notice required in subsection (6) of
this section.
(3) The authorizing resolution or ordinance must provide that
electors residing within the municipality may file a petition
with the municipality asking to have the question of whether to
issue such bonds referred to a vote.
(4) If the municipality receives petitions containing valid
signatures of that municipality's electors totaling not less than
five percent of the municipality's electors, the question of
issuing such bonds shall be placed on the ballot at the next
legally available election date.
(5) If such a petition is filed with the municipality within 60
days following publication of the notice described in subsection
(6) of this section, no bonds may be sold until the resolution or
ordinance is approved by a majority of the electors of that
jurisdiction voting on the resolution or ordinance.
(6) A notice describing the purposes for which the bonds are
sold shall be published by the municipality in at least one
newspaper of general circulation within the municipality, and in
the same manner as are other public notices of that municipality.
Such notice shall contain:
(a) The date the authorizing resolution or ordinance was
adopted and the number thereof, if any;
(b) Expected source of revenue for repayment of the revenue
bonds;
(c) Estimated principal amount of the bonds to be sold;
(d) The procedures by which the question of issuing the revenue
bonds may be referred to a vote;
(e) The time in which the required signatures must be gathered;
(f) Any other information the municipality may wish to include;
and
(g) The fact that the authorizing resolution or ordinance is
available for inspection at the appropriate office of the
municipality.
{ + (7) The order calling an election under this section must
set forth:
(a) A statement of the specific projects and uses that the bond
proceeds will be used to fund.
(b) The dollar amount of the bonds proposed to be issued.
(c) The length of time during which the bonds mature. + }
{ - (7) - } { + (8) + } Nothing in subsections (1) to
{ - (7) - } { + (8) + } of this section shall in any way
prohibit the municipality on its own initiative from referring
the resolution or ordinance authorizing the sale of revenue bonds
to a vote of the electors of the municipality.
{ - (8) - } { + (9) + } When the public body issuing
revenue bonds is a municipality, the municipality shall issue
such bonds in accordance with the provisions of ORS 288.515 to
288.560.
SECTION 7. { + Section 5 of this 2001 Act and the amendments
to ORS 287.012, 287.056, 287.070 and 288.815 by sections 1 to 3
and 6 of this 2001 Act apply only to bonds sold pursuant to an
election conducted on or after the effective date of this 2001
Act. + }
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