Chapter 343 Oregon Laws 2003

AN ACT

SB 807

Relating to revenue bonds issued by school district boards; creating new provisions; amending ORS 328.001; and declaring an emergency.

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

SECTION 1. ORS 328.001 is amended to read:

328.001. As used in this chapter, unless the context requires otherwise:

(1) “Administrative office for the county” means the administrative office of the county school district, of the education service district, or of any common school district which includes an entire county.

(2) “Impact aid revenues” means the revenues received by a school district from the federal government pursuant to 20 U.S.C. 7701 to 7714.

[(2)] (3) “School district” includes common and union high school districts.

SECTION 2. Sections 3 and 4 of this 2003 Act are added to and made a part of ORS chapter 328.

SECTION 3. (1) Pursuant to an agreement between a school district board and the governing body of an Indian tribe whose reservation is located partly or wholly within the district, a school district board, by resolution, may issue negotiable impact aid revenue bonds pursuant to this section.

(2)(a) As used in paragraph (b) of this subsection, the average amount of impact aid revenues that a school district receives equals the total amount of impact aid revenues received by the school district for the five years immediately preceding the year the bonds are issued, divided by five.

(b) The aggregate principal sum of impact aid revenue bonds that may be issued by a school district board may not exceed five times the average amount of impact aid revenues that the school district receives annually from the federal government.

(3) A school district may use bond proceeds from impact aid revenue bonds to:

(a) Pay the cost of school capital construction projects on the Indian reservation where the students reside for which the school district received impact aid revenues;

(b) Pay the cost of bond-related expenses incurred by the school district; and

(c) Fund any reserves or sinking accounts established by the resolution that authorized the issuance of the bonds.

SECTION 4. If a school district board issues impact aid revenue bonds under section 3 of this 2003 Act, the board shall establish:

(1) An impact aid revenue bond building fund consisting of the net proceeds received from the sale of the bonds. The fund shall be a continuing fund that is not subject to reversion to another fund. The board may use moneys in the fund only for the purposes specified in section 3 (3) of this 2003 Act.

(2) An impact aid revenue bond debt service fund consisting of moneys received by the school district as impact aid revenues. The board may use moneys in the fund only for the payment of debt service on impact aid revenue bonds. If any surplus remains after all interest and principal have been paid on all impact aid revenue bonds issued by the board then outstanding and unpaid, the board may transfer the surplus to another fund.

SECTION 5. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect July 1, 2003.

Approved by the Governor June 12, 2003

Filed in the office of Secretary of State June 12, 2003

Effective date July 1, 2003

__________