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 3214
 
                           A-Engrossed
 
                         Senate Bill 933
                   Ordered by the Senate May 1
             Including Senate Amendments dated May 1
 
Sponsored by Senator FERRIOLI; Senators HARTUNG, MESSERLE,
  NELSON, STARR (at the request of Lower John Day Partnership)
 
 
                             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.
 
  Authorizes creation of intergovernmental entities to operate,
maintain, repair and modernize   { - roads - }  { +
transportation facilities + }.  Prescribes authority of entity,
including authority to issue general obligation bonds and to
assess, levy and collect taxes.
 
                        A BILL FOR AN ACT
Relating to intergovernmental entities; creating new provisions;
  and amending ORS 190.080.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 2 of this 2001 Act is added to and made a
part of ORS 190.003 to 190.130.
  SECTION 2.  { + (1) Before a county enters into an
intergovernmental agreement creating an intergovernmental entity
to operate, maintain, repair and modernize transportation
facilities, the county shall consult with the governing bodies of
cities within the county about the terms and conditions of the
agreement.
  (2) Notwithstanding ORS 190.080 and subject to the provisions
of this section, an intergovernmental entity created to operate,
maintain, repair and modernize transportation facilities may
issue general obligation bonds and assess, levy and collect taxes
and fees in support of the purposes of the entity.
  (3)(a) To carry out the purposes of an intergovernmental
agreement under this section, and when authorized at an election
described in paragraph (b) of this subsection, an
intergovernmental entity created to operate, maintain, repair and
modernize transportation facilities may borrow moneys and sell
and dispose of general obligation bonds. Approval requires an
affirmative vote of a majority of the electors within the
intergovernmental entity voting in the election.
  (b) If the bonds are not subject to the limitations under
section 11 or 11b, Article XI of the Oregon Constitution:
  (A) The proposition submitted to the electors shall provide
that the intergovernmental entity shall assess, levy and collect
taxes each year on the assessed value of all taxable property
 
within the intergovernmental entity for the purposes of paying
the principal and interest on the general obligation bonds;
  (B) The election must comply with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution; and
  (C) Outstanding bonds may never exceed in the aggregate two
percent of the real market value of all taxable property within
the entity.
  (4) The governing body of an intergovernmental entity created
to operate, maintain, repair and modernize transportation
facilities shall issue the bonds from time to time as authorized
by the electors of the entity. The governing body shall issue the
bonds according to the applicable provisions of ORS chapters 287
and 288.
  (5) The electors of an intergovernmental entity created to
operate, maintain, repair and modernize transportation facilities
may establish a permanent rate limit for ad valorem property
taxes for the entity pursuant to section 11 (3)(c), Article XI of
the Oregon Constitution.
  (6) An intergovernmental entity created to operate, maintain,
repair and modernize transportation facilities may exercise the
powers necessary to carry out the purposes of the
intergovernmental agreement, including but not limited to the
authority to enter into agreements and to expend tax proceeds and
other revenues the entity receives.
  (7) An intergovernmental entity created to operate, maintain,
repair and modernize transportation facilities is not a district
as defined in ORS 198.010 and is not subject to the provisions of
ORS chapter 451. + }
  SECTION 3. ORS 190.080 is amended to read:
  190.080. (1) An intergovernmental entity created by an
intergovernmental agreement under ORS 190.010 may, according to
the terms of the agreement:
  (a) Issue revenue bonds under ORS 288.805 to 288.945 to
accomplish the public purposes of the parties to the agreement,
if after a public hearing the governing body of each of the units
of local government that are parties to the agreement approves,
by resolution or order, the issuance of the revenue bonds;
  (b) Enter into agreements with vendors, trustees or escrow
agents for the installment purchase or lease, with option to
purchase, of real or personal property if the period of time
allowed for payment under an agreement does not exceed 20 years;
and
  (c) Adopt all rules necessary to carry out its powers and
duties under the intergovernmental agreement.
  (2)  { + Except as provided in section 2 of this 2001 Act, + }
an intergovernmental entity   { - shall - }   { + may + } not
 { - have the power to - }  levy taxes or issue general
obligation bonds.
  (3) The debts, liabilities and obligations of an
intergovernmental entity shall be, jointly and severally, the
debts, liabilities and obligations of the parties to the
intergovernmental agreement that created the entity, unless the
agreement specifically provides otherwise.
  (4) A party to an intergovernmental agreement creating an
intergovernmental entity may assume responsibility for specific
debts, liabilities or obligations of the intergovernmental
entity.
  (5) Any moneys collected by or credited to an intergovernmental
entity shall not accrue to the benefit of private persons. Upon
dissolution of the entity, title to all assets of the
intergovernmental entity shall vest in the parties to the
intergovernmental agreement. The agreement creating the entity
shall provide a procedure for:
  (a) The disposition, division and distribution of any assets
acquired by the intergovernmental entity; and
  (b) The assumption of any outstanding indebtedness or other
liabilities of the entity by the parties to the intergovernmental
agreement that created the entity.
  (6) An intergovernmental entity created by intergovernmental
agreement under ORS 190.010 may be terminated at any time by
unanimous vote of all the parties to the intergovernmental
agreement or as provided by the terms of the agreement.
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