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 1159
 
                    House Joint Resolution 3
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of State Treasurer Jim Hill)
 
 
                             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.
 
  Proposes amendment to Oregon Constitution to allow bonds to be
issued, payable from proceeds of tobacco settlement. Specifies
purposes for which bond proceeds may be used.
  Refers proposed amendment to people for their approval or
rejection at next regular general election.
 
                        JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
  Oregon:
  PARAGRAPH 1. The Constitution of the State of Oregon is amended
by creating a new section 16 to be added to and made a part of
Article XI, such section to read:
   { +  SECTION 16. + }  { + (1) The State Treasurer may issue
bonds or other forms of debt instruments that are payable only
from moneys paid to, or earned by, the State of Oregon as a
result of the Master Settlement Agreement entered into on
November 23, 1998, by the State of Oregon and leading United
States tobacco product manufacturers. Bonds or other debt
instruments issued under this section shall be special
obligations of the State of Oregon that are payable only from the
Master Settlement Agreement proceeds, amounts in any reserve
accounts established for the bonds or other debt instruments and
any credit enhancement authorized by law for the bonds or other
debt instruments. Neither the faith and credit of the State of
Oregon nor its taxing power shall be pledged or committed to the
payment of the bonds or other debt instruments nor shall any
other assets of the State of Oregon be pledged, committed or
obligated to the payment thereof. The Legislative Assembly shall
appropriate from the moneys paid to, or earned by, the State of
Oregon as a result of the Master Settlement Agreement amounts
sufficient to pay the bonds or other debt instruments issued
under this section before appropriating the moneys for any other
purposes. The proceeds of the bonds or debt instruments may be
used only for the purposes of supporting public education, health
care and public safety in Oregon, funding a state budget reserve
fund and funding the health care trust fund authorized in
subsection (2) of this section. The interest on the bonds or
other debt instruments may be taxable or they may be structured
so that the interest is tax exempt, whichever the State Treasurer
determines is in the best interest of the State of Oregon. The
Legislative Assembly shall enact legislation to carry out the
provisions of this section. This section shall take precedence,
and control, over any conflicting section of the Constitution
that relates to the use of moneys paid to or earned by the state
from the Master Settlement Agreement.
  (2) The Legislative Assembly may specify that an amount of the
proceeds of any bonds or other debt instruments issued under this
section shall be deposited in a health care trust fund.  Earnings
on the moneys in the fund shall be retained in the fund or
expended for the public purposes of preventing the use of tobacco
and supporting, promoting and providing health care to Oregonians
as provided by law. Moneys in the health care trust fund shall be
invested as provided by law and shall not be subject to the
limitations of section 6 of this Article. The Legislative
Assembly may appropriate other moneys or revenues to the health
care trust fund. + }
 
  PARAGRAPH 2.  { + The amendment proposed by this resolution
shall be submitted to the people for their approval or rejection
at the next regular general election held throughout this
state. + }
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