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 1134
Senate Joint Resolution 2
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Superintendent of Public
Instruction Stan Bunn)
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 establish School
Stabilization Fund. Limits fund principal to five percent of
General Fund. Prescribes economic conditions or emergency that
must be present for appropriations to be made from School
Stabilization Fund.
Establishes revenue sources for fund, including appropriations
from General Fund, net proceeds from state lottery, tobacco
settlement moneys, contributions from income tax checkoff and
grants.
Establishes three-fifths supermajority voting requirement for
School Stabilization Fund appropriations.
Limits percentage by which legislature may reduce
appropriations for public education in certain cases.
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 9 to be added to and made a part of
Article VIII, and by amending section 4, Article XV, such
sections to read:
{ + SECTION 9. + } { + (1) The School Stabilization Fund is
established in the State Treasury, separate and distinct from the
General Fund. Moneys in the School Stabilization Fund may be
expended only for the purpose of eliminating or alleviating the
effects of an economic recession or other legislatively declared
emergency in Oregon on the financing of public education in this
state.
(2) Moneys in the School Stabilization Fund may be invested as
provided by law and shall not be subject to the limitations of
section 6, Article XI of this Constitution.
(3) The School Stabilization Fund shall consist of but not be
limited to:
(a) Appropriations from the General Fund for each biennium;
(b) Oregon State Lottery Fund allocations as provided in
section 4, Article XV of this Constitution;
(c) During the period in which payments are made, 75 percent of
moneys paid to this state on or after the effective date of this
section by United States tobacco products manufacturers under the
Master Settlement Agreement of 1998;
(d) Moneys donated to the School Stabilization Fund by
taxpayers by means of a checkoff on Oregon personal income tax
returns;
(e) Any gifts, grants, federal government revenues or other
moneys as may be made available for deposit into the School
Stabilization Fund; and
(f) Any other moneys appropriated to the School Stabilization
Fund by the Legislative Assembly.
(4) Earnings on moneys in the School Stabilization Fund shall
be retained in the fund or expended for the purpose of financing
public education in this state during times of economic recession
or a legislatively declared emergency.
(5) When moneys are transferred or credited to the School
Stabilization Fund from the sources described in subsection (3)
of this section, if the transfer or crediting of those moneys
causes the fund principal to exceed five percent of the total
revenues credited to the General Fund, including net revenues
from the State Lottery:
(a) The amount by which the fund principal exceeds five percent
of the total revenues credited to the General Fund, including net
revenues from the State Lottery, shall be appropriated and
credited to other funds and accounts in the State Treasury to be
used for general governmental purposes in Oregon. Paragraph (a)
of subsection (6) of this section does not apply to expenditures
or transfers of moneys made under this paragraph.
(b) Transfers or credits from the sources described in
subsection (3) of this section shall not be made for as long as
the fund principal equals or exceeds five percent of the total
revenues credited to the General Fund, including net revenues
from the State Lottery.
(6)(a) The Legislative Assembly may appropriate moneys from
amounts held in the School Stabilization Fund only when economic
conditions present or predicted in this state indicate the
presence or likelihood of an economic recession and when economic
and revenue forecasts project a negative ending balance for the
General Fund for the biennium for which the forecasts are being
made or when at least three-fifths of the members of each house
of the Legislative Assembly declare an emergency. Moneys in the
School Stabilization Fund may not be used to fund new programs or
build state budgets. The Legislative Assembly may appropriate
only those moneys in the fund that are derived from interest and
investment earnings from the fund principal. Such moneys may be
expended only after a declaration by the Legislative Assembly
that the economic conditions or emergency described in this
paragraph exists.
(b) Appropriations made pursuant to this subsection may be made
only upon the approval of three-fifths of the members elected to
each house of the Legislative Assembly.
(c) The Legislative Assembly may by law prescribe the
procedures to be used and identify the persons required to make
the forecasts described in this subsection.
(7) No transfers or credits from the sources described in
subsection (3) of this section need be made to the School
Stabilization Fund during a biennium when appropriations are made
from the School Stabilization Fund pursuant to subsection (6) of
this section.
(8) When the economic conditions or declared emergency
described in paragraph (a) of subsection (6) of this section
results in a general reduction in appropriations from the General
Fund for state agencies, the Legislative Assembly may not reduce
appropriations for public education in this state by a percentage
greater than the average percentage reduction for state
agencies. + }
{ + Sec. 4. + } (1) Except as provided in subsections (2),
(3), (4), (5) { - and - } { + , + } (6) { + and (7) + } of
this section, lotteries and the sale of lottery tickets, for any
purpose whatever, are prohibited, and the Legislative Assembly
shall prevent the same by penal laws.
(2) The Legislative Assembly may provide for the establishment,
operation, and regulation of raffles and the lottery commonly
known as bingo or lotto by charitable, fraternal, or religious
organizations. As used in this section, charitable, fraternal or
religious organization means such organizations or foundations as
defined by law because of their charitable, fraternal, or
religious purposes. The regulations shall define eligible
organizations or foundations, and may prescribe the frequency of
raffles, bingo or lotto, set a maximum monetary limit for prizes
and require a statement of the odds on winning a prize. The
Legislative Assembly shall vest the regulatory authority in any
appropriate state agency.
(3) There is hereby created the State Lottery Commission which
shall establish and operate a State Lottery. All proceeds from
the State Lottery, including interest, but excluding costs of
administration and payment of prizes, shall be used for any of
the following purposes: creating jobs, furthering economic
development, financing public education in Oregon or restoring
and protecting Oregon's parks, beaches, watersheds and critical
fish and wildlife habitats.
(4)(a) The State Lottery Commission shall be comprised of five
members appointed by the Governor and confirmed by the Senate who
shall serve at the pleasure of the Governor. At least one of the
Commissioners shall have a minimum of five years experience in
law enforcement and at least one of the Commissioners shall be a
certified public accountant. The Commission is empowered to
promulgate rules related to the procedures of the Commission and
the operation of the State Lottery. Such rules and any statutes
enacted to further implement this article shall insure the
integrity, security, honesty, and fairness of the Lottery. The
Commission shall have such additional powers and duties as may be
provided by law.
(b) The Governor shall appoint a Director subject to
confirmation by the Senate who shall serve at the pleasure of the
Governor. The Director shall be qualified by training and
experience to direct the operations of a state-operated lottery.
The Director shall be responsible for managing the affairs of the
Commission. The Director may appoint and prescribe the duties of
no more than four Assistant Directors as the Director deems
necessary. One of the Assistant Directors shall be responsible
for a security division to assure security, integrity, honesty,
and fairness in the operations and administration of the State
Lottery. To fulfill these responsibilities, the Assistant
Director for security shall be qualified by training and
experience, including at least five years of law enforcement
experience, and knowledge and experience in computer security.
(c) The Director shall implement and operate a State Lottery
pursuant to the rules, and under the guidance, of the Commission.
The State Lottery may operate any game procedure authorized by
the commission, except parimutuel racing, social games, and the
games commonly known in Oregon as bingo or lotto, whereby prizes
are distributed using any existing or future methods among adult
persons who have paid for tickets or shares in that game;
provided that, in lottery games utilizing computer terminals or
other devices, no coins or currency shall ever be dispensed
directly to players from such computer terminals or devices.
(d) There is hereby created within the General Fund the Oregon
State Lottery Fund which is continuously appropriated for the
purpose of administering and operating the Commission and the
State Lottery. The State Lottery shall operate as a
self-supporting revenue-raising agency of state government and no
appropriations, loans, or other transfers of state funds shall be
made to it. The State Lottery shall pay all prizes and all of its
expenses out of the revenues it receives from the sale of tickets
or shares to the public and turnover the net proceeds therefrom
to a fund to be established by the Legislative Assembly from
which the Legislative Assembly shall make appropriations for the
benefit of any of the following public purposes: creating jobs,
furthering economic development, financing public education in
Oregon or restoring and protecting Oregon's parks, beaches,
watersheds and critical fish and wildlife habitats. Effective
July 1, 1997, 15% of the net proceeds from the State Lottery
shall be deposited, from the fund created by the Legislative
Assembly under this paragraph, in an education endowment fund.
Earnings on moneys in the education endowment fund shall be
retained in the fund or expended for the public purpose of
financing public education in Oregon as provided by law. Moneys
in the education endowment fund shall be invested as provided by
law and shall not be subject to the limitations of section 6,
Article XI of this Constitution. The Legislative Assembly may
appropriate other moneys or revenue to the education endowment
fund. The Legislative Assembly shall appropriate amounts
sufficient to pay lottery bonds before appropriating the net
proceeds from the State Lottery for any other purpose. At least
84% of the total annual revenues from the sale of all lottery
tickets or shares shall be returned to the public in the form of
prizes and net revenues benefiting the public purpose.
(5) Effective July 1, 1999, 15% of the net proceeds from the
State Lottery shall be deposited in a parks and natural resources
fund created by the Legislative Assembly. Of the moneys in the
parks and natural resources fund, 50% shall be distributed for
the public purpose of financing the protection, repair,
operation, and creation of state parks, ocean shore and public
beach access areas, historic sites and recreation areas, and 50%
shall be distributed for the public purpose of financing the
restoration and protection of native salmonid populations,
watersheds, fish and wildlife habitats and water quality in
Oregon. The Legislative Assembly shall not limit expenditures
from the parks and natural resources fund. The Legislative
Assembly may appropriate other moneys or revenue to the parks and
natural resources fund.
{ + (6) In each calendar quarter commencing on and after July
1, 2003, 50% of the amount by which the net proceeds from the
State Lottery for that quarter exceed the net proceeds for the
same calendar quarter in the preceding year shall be transferred
and credited to the School Stabilization Fund established under
section 8, Article VIII of this Constitution. Transfers of net
proceeds from the State Lottery shall not be made under this
subsection when the School Stabilization Fund is fully funded, as
provided in paragraph (b) of subsection (5) of section 8, Article
VIII of this Constitution. + }
{ - (6) - } { + (7) + } Only one State Lottery operation
shall be permitted in the State.
{ - (7) - } { + (8) + } The Legislative Assembly has no
power to authorize, and shall prohibit, casinos from operation in
the State of Oregon.
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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