House Joint Resolution 18

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 Article to be known as Article XI-O, such Article to read:

ARTICLE XI-O

SECTION 1. (1) In the manner provided by law and notwithstanding the limitations contained in section 7, Article XI of this Constitution, the credit of the State of Oregon may be loaned and indebtedness incurred to finance the State of Oregon's pension liabilities. Indebtedness authorized by this section also may be used to pay costs of issuing or incurring indebtedness under this section.

(2) Indebtedness incurred under this section is a general obligation of the State of Oregon and must contain a direct promise on behalf of the State of Oregon to pay the principal, premium, if any, and interest on that indebtedness. The State of Oregon shall pledge its full faith and credit and taxing power to pay that indebtedness; however, the ad valorem taxing power of the State of Oregon may not be pledged to pay that indebtedness. The amount of indebtedness authorized by this section and outstanding at any time may not exceed one percent of the real market value of all property in the state.

SECTION 2. Indebtedness incurred under section 1 of this Article may be refunded with like obligations.

SECTION 3. The Legislative Assembly may enact legislation to carry out the provisions of this Article.

SECTION 4. This Article supersedes all conflicting provisions of this Constitution.

PARAGRAPH 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at a special election held throughout this state as provided in section 2, chapter 592, Oregon Laws 2003 (Enrolled House Bill 2651).

Filed in the office of Secretary of State July 17, 2003

__________