Chapter 16 Oregon Laws 2003

AN ACT

HB 2133

Relating to state finance; amending ORS 184.643, 288.020, 293.214 and 293.220.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 184.643 is amended to read:

184.643. Once each year the Oregon Department of Administrative Services, after consultation with the Oregon Transportation Commission and the Department of Transportation, shall estimate the amount of taxes paid for which persons are entitled to refunds under ORS 319.280 (1)(a) and (e), 319.320 (1)(a) and 319.831 (1)(b). After deducting the amount of any refunds actually paid, the Oregon Department of Administrative Services shall certify the remaining amount to the Department of Transportation [and the State Treasurer]. The [treasurer] Department of Transportation shall transfer the remaining amount from the Driver and Motor Vehicle Suspense Account to the Department of Transportation Operating Fund established by ORS 184.642 (1) and (2).

SECTION 2. ORS 288.020 is amended to read:

288.020. (1) The State Treasurer may [designate] appoint, as fiscal agency for payment of the bonds issued by this state or by any subdivision, a reputable and responsible bank or trust company. The appointment when so made shall continue for a period of two years unless sooner revoked by the State Treasurer for valid and sufficient reasons. [The] An appointment may be renewed [for a period of two years.] and when renewed shall be for a period not to exceed two years. The State Treasurer may revoke the renewal of an appointment for valid and sufficient reasons. Nothing in this subsection limits the number of times the appointment of a particular bank or trust company as fiscal agency may be renewed.

(2) Until its successor has been appointed, the bank or trust company named shall act as the fiscal agency of the State of Oregon, in accordance with such terms as shall be agreed upon between the State Treasurer and the agency. The fiscal agency shall act as custodian of such securities owned by the State of Oregon as the State Treasurer shall specify.

(3) If no such bank or trust company is willing to accept appointment as fiscal agency, or if the State Treasurer considers unsatisfactory the terms under which such a bank or trust company is willing so to act, the bonds and bond interest shall thereupon become payable at the State Treasury or at the office of the treasurer or fiscal officer of the subdivision concerned, as the case may be.

SECTION 3. ORS 293.214 is amended to read:

293.214. (1) Subject to the provisions of this section, a state agency may establish with the State Treasurer lines of credit for funds under its administration, upon a certificate by the agency's department head and chief financial officer to the State Treasurer representing and satisfactorily demonstrating, for the period for which a line of credit is requested, that:

(a) There will be insufficient moneys to the credit of the funds for which the line of credit is requested to meet expenses as they arise; and

(b) The agency will be entitled for expenditure of agency funds to reimbursement from federal agencies or other sources sufficient to repay, when due, all draws against the line of credit, plus interest charged to the agency.

(2) No line of credit, based upon anticipated reimbursements, shall be established more than six months in advance of a draw on the credit and draws shall be repaid to the lending fund within six months. Reimbursements must be applied against any outstanding advances on the line of credit established under this section.

(3) The State Treasurer may fund lines of credit established pursuant to this section from money to the credit of other state funds which will not be required to meet the respective obligations of the funds during the period for which a draw under a line of credit is not repaid, as provided in ORS 293.210.

[(4) All draws under a line of credit authorized by this section shall bear interest until repaid at the same rate that the moneys would have earned in the fund from which they were transferred. The interest shall be paid from the fund for which there was a draw on the line of credit.]

[(5)] (4) A line of credit may operate as a revolving fund, so that draws shall proportionately reduce and repayments shall proportionately increase the credit remaining under the line of credit, but at no time shall the total amount of draws against the line of credit exceed the credit limit.

[(6)] (5) Every state agency for which a line of credit is established shall report promptly in writing to the State Treasurer any change in information furnished in support of the request for a line of credit.

[(7)] (6) The State Treasurer may grant or deny, modify or terminate a line of credit when in the judgment of the State Treasurer it is in the best interest of the state.

SECTION 4. ORS 293.220 is amended to read:

293.220. All moneys or credits transferred under ORS 293.210 or 293.214 shall bear interest, until retransferred, at such rate not less than two percent per annum as shall be agreed upon between the State Treasurer and the officer, state department, commission, or board in charge of the borrowing fund. The interest shall be payable from the borrowing fund and shall be credited to and become part of the lending fund.

Approved by the Governor March 25, 2003

Filed in the office of Secretary of State March 25, 2003

Effective date January 1, 2004

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