72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2213
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Transportation)
CHAPTER ................
AN ACT
Relating to highway bonds; creating new provisions; amending ORS
286.051, 286.061, 366.542, 367.010, 367.015, 367.020, 367.035,
367.040, 367.050, 367.060, 367.105, 367.555, 367.560, 367.565,
367.595, 367.600, 367.605, 367.615, 367.635, 367.640, 367.645,
367.655, 367.660, 367.705, 367.710, 367.715, 367.745 and
367.750; repealing ORS 367.226, 367.228, 367.230, 367.232,
367.234, 367.236, 367.238, 367.242, 367.258, 367.370, 367.415,
367.430, 367.550 and 367.610; appropriating money; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 10 of this 2003 Act are added to
and made a part of ORS chapter 367. + }
SECTION 2. { + As used in sections 2 to 10 of this 2003 Act:
(1) 'Federal transportation funds' means funds apportioned or
allocated, or anticipated to be apportioned or allocated in the
current or a future federal fiscal year, to the state by the
United States Department of Transportation for use on a
federal-aid highway or highway safety construction project or
other federal funds that may be used for a highway improvement
project that are available or are anticipated to be available in
the current or a future federal fiscal year.
(2) 'Grant anticipation revenue bond' means a revenue bond
secured based on receipt, or anticipation of receipt in the
current or a future federal fiscal year, of federal
transportation funds.
(3) 'Highway improvement project' means a federal-aid highway
or highway safety construction project, a transportation project
or another project for which the Department of Transportation may
use federal transportation funds. + }
SECTION 3. { + The State Treasurer, at the request of the
Department of Transportation, may issue grant anticipation
revenue bonds for the purposes of:
(1) Financing highway improvement projects including highway
improvement projects already under way or scheduled;
(2) Financing the restoration, reconstruction or renovation of
highway improvements in Oregon;
(3) Financing transportation projects;
(4) Paying the costs of issuance of the revenue bonds
including, but not limited to, the costs and fees of paying
agents, trustees and remarketing agents; or
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(5) Paying the costs of credit enhancements. + }
SECTION 4. { + (1) A grant anticipation revenue bond issued
under sections 2 to 10 of this 2003 Act:
(a) Must contain on its face a statement that the ad valorem
taxing power of this state or any political subdivision of this
state is not pledged to the payment of the principal or the
interest on the revenue bond.
(b) May be sold at public competitive bid or at private
negotiated sale.
(c) May be sold at the price or prices established by the State
Treasurer, upon the advice of the Department of Transportation.
(d) Must mature on or before a date determined by calculation
of the expected economic life of the improvements, assets and
projects financed with the proceeds of the revenue bonds.
(2) The State Treasurer shall determine, upon the advice of the
department and consistent with ORS 288.805 to 288.945, all
aspects relating to the sale of revenue bonds under sections 2 to
10 of this 2003 Act that are not otherwise specifically provided,
including rate of interest and discount, if any. + }
SECTION 5. { + (1) Before grant anticipation revenue bonds are
issued under sections 2 to 10 of this 2003 Act, the Department of
Transportation shall prepare a revenue declaration authorizing
issuance of the revenue bonds. The declaration must be signed by
the Director of Transportation, or the director's designee, and
must be approved by the State Treasurer, or the treasurer's
designee.
(2) A declaration under this section may:
(a) Pledge all or a portion of the moneys described in section
7 of this 2003 Act for purposes of the revenue bonds to be
issued.
(b) Limit the purposes to which the department may apply the
proceeds of the sale.
(c) Make pledges concerning the proceeds of the sale or moneys
described in section 7 of this 2003 Act to secure payment of the
revenue bonds issued under sections 2 to 10 of this 2003 Act.
(d) Limit or otherwise provide for the issuance of additional
revenue bonds, including refunding bonds, under sections 2 to 10
of this 2003 Act, limit or establish terms upon which additional
revenue bonds, including refunding bonds, may be issued under
sections 2 to 10 of this 2003 Act.
(e) Provide for procedures, if any, by which the terms of
contracts with bondholders may be amended or rescinded, for the
percentage of the bondholders that must consent to amendment or
rescission of the contract and for the manner of bondholder
consent to amendment or rescission of the contract.
(f) Establish a trustee and vest the trustee with property,
rights, powers or duties in trust, as the State Treasurer
determines appropriate.
(g) Provide for other matters affecting issuance of the revenue
bonds.
(3) A declaration under this section may establish the same
requirements, be subject to the same provisions, create the same
obligations and confer the same rights as an indenture under
section 6 of this 2003 Act, if so provided in the
declaration. + }
SECTION 6. { + An indenture under which grant anticipation
revenue bonds are issued may provide for:
(1) The pledging of all or a portion of the moneys described in
section 7 of this 2003 Act to the payment of the principal,
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interest, premium, if any, or the bond debt service of revenue
bonds issued under sections 2 to 10 of this 2003 Act;
(2) Requirements concerning a particular series of revenue
bonds issued under sections 2 to 10 of this 2003 Act;
(3) Requirements concerning moneys described in section 7 of
this 2003 Act and payment on outstanding revenue bonds issued
under sections 2 to 10 of this 2003 Act;
(4) A contractual undertaking for the benefit of bondholders
concerning assessment, levy collection and deposit of moneys
described in section 7 of this 2003 Act;
(5) Provisions concerning the registration of revenue bonds or
the recording or filing of the indenture;
(6) Provisions relating to a reserve account. Provisions under
this subsection may include, but are not limited to, the amount
required for an account and provisions for replenishing the
account from moneys described in section 7 of this 2003 Act;
(7) Provisions concerning trustees including, but not limited
to:
(a) Establishing funds, accounts or moneys described in section
7 of this 2003 Act over which the trustee will be custodian; and
(b) Providing that a trustee will be appointed; or
(8) Establishing the maturation date of the revenue bonds. + }
SECTION 7. { + The principal, interest, premium, if any, and
the purchase or tender price of the grant anticipation revenue
bonds issued under sections 2 to 10 of this 2003 Act are payable
solely from the following moneys:
(1) Federal transportation funds.
(2) To the extent affirmatively pledged at the time issuance of
revenue bonds is authorized, the following moneys that are
lawfully available:
(a) Moneys deposited in the State Highway Fund established
under ORS 366.505.
(b) Except as provided in paragraph (c) of this subsection,
moneys, once deposited in the State Highway Fund established
under ORS 366.505, from the following sources may be
affirmatively pledged:
(A) Moneys from the taxes and fees on motor carriers imposed
under ORS 825.474 and 825.480.
(B) Moneys from the tax on motor vehicle fuel imposed under ORS
319.020.
(C) Moneys from the tax on fuel used in motor vehicles imposed
under ORS 319.530.
(D) Moneys described under ORS 803.090 from the titling of
vehicles.
(E) Moneys described under ORS 803.420 from the registration of
vehicles.
(F) Moneys described under ORS 807.370 relating to the issuance
of driver licenses and driver permits.
(G) Moneys received by the Department of Transportation from
taxes, fees or charges imposed after January 1, 2001, or other
revenues or moneys received by the department from sources not
listed in subparagraphs (A) to (F) of this paragraph that are
lawfully available to be pledged under this section.
(c) Moneys described in paragraph (b) of this subsection do not
include:
(A) Moneys provided for appropriations to counties under ORS
366.525 to 366.540.
(B) Moneys provided for appropriations to cities under ORS
366.785 to 366.820.
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(C) Moneys in the account established under ORS 366.512 for
parks and recreation. + }
SECTION 8. { + The State Treasurer may issue grant
anticipation revenue bonds to refund outstanding grant
anticipation revenue bonds or other obligations, the proceeds of
which were used to finance highway improvement projects.
Refunding and advance refunding bonds authorized in this section
are subject to the provisions of sections 2 to 10 of this 2003
Act. + }
SECTION 9. { + (1) When grant anticipation revenue bonds have
been issued under sections 2 to 10 of this 2003 Act, the
Department of Transportation shall collect federal transportation
funds and may, as provided by the department when issuance of the
revenue bonds was authorized, use the funds:
(a) For deposit into one or more special funds or accounts that
may be pledged to secure payment of the revenue bonds.
(b) For payment of the costs of highway improvement projects.
(c) For reimbursement to the department of moneys previously
spent on highway improvement projects.
(2) The department may direct the United States government to
deposit federal transportation funds directly with a trustee for
the holders of the revenue bonds to secure payment of the revenue
bonds.
(3) The department shall use the proceeds of a sale of revenue
bonds issued under sections 2 to 10 of this 2003 Act to pay:
(a) The costs and expenses incurred in the construction or
acquisition of a highway improvement project.
(b) Legal and financial costs and expenses incurred to issue or
administer the revenue bonds.
(4) If moneys pledged to secure Highway User Tax Bonds pursuant
to ORS 367.605 are also pledged to secure payment of principal,
interest, premium, if any, and purchase or tender price of grant
anticipation revenue bonds issued under sections 2 to 10 of this
2003 Act, the pledge to secure grant anticipation revenue bonds
issued under sections 2 to 10 of this 2003 Act is subordinate and
subject to prior use of the moneys to pay Highway User Tax
Bonds. + }
SECTION 10. { + (1) Grant anticipation revenue bonds issued
under sections 2 to 10 of this 2003 Act are not general
obligations of the State of Oregon or of an agency, department,
board, commission, officer or employee of the State of Oregon.
(2) The revenue bonds are a limited obligation payable solely
from federal transportation funds received by the Department of
Transportation and, if provided by the department when issuance
of the revenue bonds is authorized, other moneys lawfully
available for the purpose and affirmatively pledged to the
payment of principal, interest, premium, if any, and purchase or
tender price of the revenue bonds.
(3) A holder of revenue bonds issued under sections 2 to 10 of
this 2003 Act may not compel the payment of federal
transportation funds to the Department of Transportation. + }
SECTION 11. ORS 367.010 is amended to read:
367.010. As used in { - ORS 367.010 to 367.067 - } { + this
chapter + }:
(1) 'Agency' means any department, agency or commission of the
State of Oregon.
{ - (2) 'Commission' means the Oregon Transportation
Commission. - }
{ - (3) 'Department' means the Department of
Transportation. - }
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{ + (2) 'Bond' means an evidence of indebtedness including,
but not limited to, a bond, a note, an obligation, a loan
agreement, a financing lease, a financing agreement or other
similar instrument or agreement.
(3) 'Bond debt service' means payment of:
(a) Principal, interest, premium, if any, or purchase price of
a bond;
(b) Amounts due to a credit enhancement provider authorized by
this chapter;
(c) Amounts necessary to fund bond debt service reserves; and
(d) Amounts due under an agreement for exchange of interest
rates if designated by the State Treasurer or the Department of
Transportation.
(4) 'Credit enhancement' means a letter of credit, line of
credit, bond insurance policy, standby purchase agreement, surety
bond or other device or facility used to enhance the
creditworthiness, liquidity or marketability of a bond. + }
{ - (4) - } { + (5) + } 'Financial institution' means a
banking institution, a financial institution or a non-Oregon
institution, as those terms are defined in ORS 706.008, and any
other institution defined by rule of the Oregon Transportation
Commission as a financial institution for purposes of ORS 367.010
to 367.067.
{ - (5) - } { + (6) + } 'Infrastructure assistance' means
any use of moneys in the Oregon Transportation Infrastructure
Fund, other than an infrastructure loan, to provide financial
assistance for transportation projects. The term includes, but is
not limited to, use of moneys in the infrastructure fund to
finance leases, fund reserves, make grants, pay issuance costs or
provide credit enhancement or other security for bonds { - ,
leases or loans obtained by municipalities - } { + issued by a
public entity + } to finance transportation projects.
{ - (6) - } { + (7) + } 'Infrastructure bonds' means bonds
authorized by ORS { - 367.226 to 367.242, 367.258, 367.370 to
367.430, - } { + 367.030, + } 367.550 to 367.600 or 367.605 to
367.670 that are issued to fund infrastructure loans { - or
provide infrastructure assistance - } and the proceeds of which
are deposited in the infrastructure fund { - , or bonds
authorized by ORS 367.030 - } .
{ - (7) - } { + (8) + } 'Infrastructure fund' means the
Oregon Transportation Infrastructure Fund.
{ - (8) - } { + (9) + } 'Infrastructure loan' means a loan
of moneys in the { - Oregon Transportation Infrastructure
Fund - } { + infrastructure fund + } to finance a
transportation project.
{ - (9) - } { + (10) + } 'Municipality' means a city,
county, road district, school district, special district,
metropolitan service district, the Port of Portland or an
intergovernmental entity organized under ORS 190.010.
{ - (10) - } { + (11) + } 'Transportation project' means
any project or undertaking that facilitates any mode of
transportation within this state. The term includes, but is not
limited to, a project for highway, transit, rail and aviation
capital infrastructure, bicycle and pedestrian paths, bridges and
ways, and other
{ - facilities - } { + projects + } that facilitate the
transportation of materials, animals or people.
SECTION 12. ORS 367.015 is amended to read:
367.015. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Oregon
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Transportation Infrastructure Fund. All moneys in the
infrastructure fund are continuously appropriated to the
Department of Transportation for the purposes of ORS 367.010 to
367.067.
(2) The { - Oregon Transportation - } infrastructure fund
{ - shall consist - } { + consists + } of:
(a) Moneys appropriated to the infrastructure fund by the
Legislative Assembly.
(b) Moneys transferred to the infrastructure fund by the
department from the State Highway Fund or from other funds
available to the Oregon Transportation Commission.
(c) Moneys from any federal grant, state grant or other grant
that are deposited in the infrastructure fund.
(d) Proceeds of infrastructure bonds.
{ + (e) Proceeds of Highway User Tax Bonds issued under ORS
367.615 and 367.670 for the purpose of providing infrastructure
assistance or an infrastructure loan.
(f) Moneys due to a municipality that are withheld pursuant to
ORS 367.035 (3) or (5) and, for a loan made with proceeds of
Highway User Tax Bonds, moneys due to a municipality that are
withheld pursuant to ORS 367.655 (2)(c). + }
{ - (e) - } { + (g) + } Earnings on the infrastructure
fund.
{ - (f) - } { + (h) + } Moneys paid to the department in
connection with infrastructure loans or infrastructure
assistance.
{ - (g) - } { + (i) + } Any grants or donations made to the
State of Oregon for deposit in the infrastructure fund.
{ + (3) A pledge by the department of its revenues or other
moneys in the infrastructure fund is valid and binding from the
time the pledge is made as provided in ORS 288.594. + }
{ - (3) - } { + (4) + } { - Moneys in the Oregon
Transportation Infrastructure Fund shall be used - } { + The
department shall use moneys in the infrastructure fund + } solely
to:
(a) Provide infrastructure loans and infrastructure assistance;
(b) Pay the { - principal of, interest on and redemption
premium, if any, on infrastructure bonds, fund reserves for
infrastructure bonds, purchase credit enhancements - } { + bond
debt service + } for infrastructure bonds and pay the costs of
issuance and other costs related to infrastructure bonds;
{ - and - }
(c) Pay the department's costs of administering the
infrastructure fund and providing infrastructure loans and
infrastructure assistance, including any costs of monitoring
transportation projects and obtaining repayment of infrastructure
loans and infrastructure assistance { + ; and
(d) Pay the department's or another public entity's costs for
transportation projects including, but not limited to, projects
funded with the proceeds of Highway User Tax Bonds + }.
{ - (4) - } { + (5) + } The department may establish
separate accounts in the infrastructure fund for infrastructure
loans, infrastructure assistance, the funding of infrastructure
bond reserves, { + bond + } debt service payments for
infrastructure bonds and related costs, administrative and
operating expenses or any other purpose necessary or desirable
for carrying out the purposes of ORS 367.010 to 367.067. The
commission may adopt rules that govern how the infrastructure
fund and its accounts { - shall be - } { + are + } used. The
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infrastructure fund or any of its accounts may be held by an
escrow agent or bond trustee.
{ - (5) - } { + (6) + } The department shall administer the
infrastructure fund. Moneys in the infrastructure fund, with the
approval of the State Treasurer, may be invested as provided by
ORS 293.701 to 293.820 and the earnings from such investments
{ - shall - } { + must + } be credited to the account in the
infrastructure fund designated by the department.
SECTION 13. ORS 367.020 is amended to read:
367.020. (1) Moneys in the Oregon Transportation Infrastructure
Fund may be used to make infrastructure loans and provide
infrastructure assistance to any public or private entity. The
Oregon Transportation Commission shall adopt rules that prescribe
procedures and standards for making infrastructure loans and
providing infrastructure assistance.
(2) Moneys in the { - Oregon Transportation - }
infrastructure fund may be used for any purpose as long as the
use is consistent with any restrictions of the Oregon
Constitution that may apply to such moneys.
SECTION 14. ORS 367.035 is amended to read:
367.035. (1) Notwithstanding any other provision of law or any
restriction on indebtedness contained in a charter, a
municipality may obtain an infrastructure loan from the
Department of Transportation by entering into a loan contract
with the department. A municipality that obtains an
infrastructure loan may pledge to the repayment of the loan all
or any portion of the revenue sources specified in this
subsection. A municipality shall repay an infrastructure loan in
accordance with the terms of the loan contract and to the extent
required by the loan contract from any or all of the following
sources:
(a) Revenues of any transportation project, including special
assessment revenues;
(b) Moneys withheld under subsection { - (4) - } { + (3) or
(5) + } of this section;
(c) The general fund of the municipality; { + or + }
{ - (d) Any combination of paragraphs (a) to (c) of this
subsection; or - }
{ - (e) - } { + (d) + } Any other sources { + including,
but not limited to, an appropriation or allocation to a county
under ORS 366.525 to 366.540 or to a city under ORS 366.785 to
366.820 + }.
(2) An infrastructure loan contract with a municipality may
provide that a portion of the proceeds of the loan be applied to
fund a reserve fund to secure the repayment of the loan or secure
the repayment of revenue bonds issued to finance the loan.
{ + (3) An infrastructure loan contract with a city or county
may provide that all or a portion of the principal and interest
on an infrastructure loan be repaid by withholding all or a
portion of an apportionment due to a county under ORS 366.525 to
366.540 or due to a city under ORS 366.785 to 366.820. The
department shall immediately transfer funds withheld under this
subsection from the State Highway Fund to the Oregon
Transportation Infrastructure Fund. + }
{ - (3) - } { + (4) + } A municipality that intends to
obtain an infrastructure loan shall adopt an ordinance or
resolution authorizing the infrastructure loan { - and shall
publish notice describing its intention to obtain an
infrastructure loan at least once in a newspaper of general
circulation within the municipality. A municipality may not enter
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into an infrastructure loan contract until 14 calendar days after
the notice has been published - } .
{ - (4) - } { + (5) + } If a municipality fails to comply
with the terms of an infrastructure loan contract, the department
may seek any legal or equitable remedy to obtain compliance or
payment of damages. If any municipality fails to make { + an + }
infrastructure loan { - payments - } { + payment + } when due,
the State of Oregon shall, at the request of the department,
withhold any funds due to the municipality from the state and
apply the amounts withheld to pay the { - amounts due from - }
{ + entire amount owed by + } the municipality under the
infrastructure loan contract. { - Any amounts - } { + The
department shall deposit funds + } withheld under this subsection
{ - shall be deposited - } in the account of the infrastructure
fund to which the municipality's infrastructure loan payments are
required to be deposited. The department may waive the right of
the State of Oregon to withhold moneys under this subsection { +
only if the department has not pledged the right as security for
the repayment of infrastructure bonds + }.
SECTION 15. ORS 367.040 is amended to read:
367.040. (1) Notwithstanding ORS 283.087 (5), an agency may
obtain an infrastructure loan. An agency may agree to pay the
infrastructure loan from any or all of the available moneys
{ - that are continuously appropriated to - } { + of + } the
agency and may pledge all or any portion of those moneys to repay
the infrastructure loan. An infrastructure loan of an agency
{ - shall - } { + does + } not constitute a debt of the state
or a lending of the credit of the state within the meaning of any
constitutional or statutory limitation.
(2) If an infrastructure loan is made to an agency, the terms
of the infrastructure loan contract { - shall - } bind the
State of Oregon and the agency, and the agency shall
unconditionally repay the infrastructure loan from the moneys the
agency has pledged in accordance with the terms of the
infrastructure loan contract.
SECTION 16. ORS 367.050 is amended to read:
367.050. The Department of Transportation may:
(1) Make all contracts { + and agreements + }, execute
{ + and deliver + } all instruments and do all things necessary
or convenient to provide financial assistance for transportation
projects in accordance with ORS 367.010 to 367.067 or to perform
covenants made to secure infrastructure bonds; and
(2) Enter into and perform such contracts and agreements with
entities concerning the planning, construction, lease or other
acquisition, installation or financing of transportation
projects.
SECTION 17. ORS 367.060 is amended to read:
367.060. (1) The Department of Transportation may pledge not
more than $10 million to ensure the repayment of loan guarantees
or other extensions of credit made to or on behalf of
municipalities to finance transportation projects. The lien of a
pledge made under this subsection is subordinate to the lien of a
pledge securing bonds issued under ORS 367.605 to 367.670.
(2) If, during a fiscal year, the moneys in the Oregon
Transportation Infrastructure Fund are insufficient to cover any
claims by financial institutions { + , credit enhancement
providers, bondholders or bond trustees + } that arise from loan
guarantees or other extensions of credit made under ORS 367.010
to 367.067, the department shall transfer, as often as necessary
or appropriate in that fiscal year, moneys from the State Highway
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Fund to satisfy such claims. However, { + the department may not
make + } a transfer of moneys from the State Highway Fund
otherwise required by this section { - shall not be made - }
if:
(a) The transfer will reduce the moneys in the State Highway
Fund to an amount that is insufficient to pay the principal and
interest { + + }that will fall due during the fiscal year on
outstanding bonds issued under ORS { - 367.226 to 367.242
and - } 367.550 to 367.600; or
(b) The transfer relates to a claim arising out of a
transportation project for which moneys in the State Highway Fund
may not be used under section 3a, Article IX, Oregon
Constitution, and ORS 366.505.
SECTION 18. ORS 367.105 is amended to read:
367.105. (1) { - The Department of Transportation may borrow
money from the State Treasurer or from any banking institution,
and evidence the debt by certificates of indebtedness redeemable
and payable out of state highway revenues for any of the
following purposes - } { + In addition to the authority for
short-term borrowing granted in ORS 288.165, the Department of
Transportation, acting through the State Treasurer, may borrow
money by entering into a credit agreement, a line of credit or a
revolving line of credit, or by issuing a note, a warrant, a
short-term promissory note, commercial paper or another similar
obligation, for the following purposes + }:
(a) Providing matching funds as set forth in ORS 366.725.
(b) Providing funds with which to pay when due the
{ - interest and principal, or either, - } { + principal or
interest + } of bonded indebtedness created for highway purposes,
the payment of which is necessary to preserve the financial
credit of the state.
(c) Meeting emergencies.
(d) Providing funds for use by the department during times when
expenditures exceed revenues, whether or not the department
anticipated that expenditures would exceed revenues.
{ + (e) Providing funds for the payment of current expenses
in anticipation of revenue, grants or other moneys intended for
payment of the current expenses.
(f) Providing funds for interim financing of a capital asset or
project to be undertaken by the department.
(g) Refunding an outstanding obligation. + }
(2) { - Such certificates of indebtedness - }
{ + Short-term borrowing under this section + } may be in such
denominations or for such sums as the department { - may fix,
and may - } { + fixes and may + } draw interest at a negotiated
rate.
(3) The total outstanding indebtedness created by the
{ - issuance of certificates of indebtedness - }
{ + short-term borrowing + } under this section { - shall - }
{ + may + } not exceed { - $25 - } { + $100 + } million in
{ - the aggregate - } { + outstanding principal amount + }.
(4) All { - certificates of indebtedness - } { + short-term
borrowing + } issued pursuant to this section shall mature within
{ - one year - } { + three years + } from the date of issuance.
{ - (5) Not less than 10 days before the date of maturity of
any such certificate of indebtedness the department shall prepare
and approve for payment a claim or voucher covering the amount of
the certificate, together with such interest as may be due
thereon, and shall file the claim or voucher with the Oregon
Department of Administrative Services which shall issue a warrant
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therefor payable out of highway funds to the party entitled
thereto. The State Treasurer may, upon the presentation of the
warrant, take up the certificate of indebtedness and cancel it,
and pay the amount of the warrant out of highway funds. Whenever
a certificate of indebtedness is redeemed and paid by the State
Treasurer the treasurer shall file it with the Oregon Department
of Administrative Services, and the department shall attach the
certificate to the original voucher pursuant to which payment of
the certificate is made. - }
{ + (5) The department shall pay for and secure short-term
borrowing under this section with funds from the State Highway
Fund or other funds that are legally available to the department
for the purposes for which the moneys were borrowed, including
moneys received by the department from the United States
government. + }
SECTION 19. ORS 367.555 is amended to read:
367.555. In addition to the authority now vested by any other
provision of law { - state highway - } { + , the Department of
Transportation may issue general obligation + } bonds of the
State of Oregon used to provide funds to defray { + the costs of
building and maintaining permanent roads, including + } the costs
of location, relocation, improvement, construction and
reconstruction of state highways and bridges { - may in the
aggregate principal sum not exceed $150 million - } { + , in an
outstanding principal amount that is subject to the provisions of
ORS 286.505 to 286.545 + }.
SECTION 20. ORS 367.560 is amended to read:
367.560. All moneys obtained from the sale of { + general
obligation + } bonds under ORS 367.550 to 367.600 { - shall
immediately - } { + must + } be paid over to the State Treasurer
and credited by the State Treasurer to the State Highway Fund.
Such moneys { - shall - } { + may + } be used only for the
purposes stated in ORS 367.550 to 367.600 { - . - }
{ + and, + } pending the use of such moneys for highway
purposes { + , + } { - they - } may be invested as provided by
law.
SECTION 21. ORS 367.565 is amended to read:
367.565. { - All bonds issued under ORS 367.550 to 367.600
shall be issued - } { + The Department of Transportation shall
issue general obligation bonds under ORS 367.550 to 367.600 + }
in accordance with ORS 286.031 to { - 286.041 - } { +
286.066 + }.
SECTION 22. ORS 367.595 is amended to read:
367.595. The Department of Transportation shall compute and
determine in January of each year, after the sale of bonds under
ORS 367.550 to 367.600, the amount of principal and interest
{ - which - } { + that + } will fall due during such year on
{ + general obligation + } bonds then outstanding and unpaid and
shall maintain or hold in the State Highway Fund sufficient
moneys to pay such maturing obligations.
SECTION 23. ORS 367.600 is amended to read:
367.600. { - No bonds shall be issued or sold under ORS
367.550 to 367.600 nor indebtedness incurred thereunder,
which - } { + The Department of Transportation may not issue or
sell general obligation bonds under ORS 367.550 to 367.600 that,
+ }singly or in the aggregate with previous debts or liabilities
incurred for the building and maintaining of permanent
roads { + , + } { - shall - } exceed any limitation provided
in the Oregon Constitution at the date of the issuance and sale
of such { + general obligation + } bonds.
Enrolled House Bill 2213 (HB 2213-INTRO) Page 10
SECTION 24. ORS 367.605 is amended to read:
367.605. { - This section establishes the moneys available
for use or pledge for purposes of issuing bonds under ORS 367.615
or 367.670. Such moneys are established as provided under the
following: - }
{ + (1) Moneys deposited in the State Highway Fund
established under ORS 366.505 are pledged to payment of Highway
User Tax Bonds issued under ORS 367.615 and 367.670. + }
{ - (1) - } { + (2) + } Except as provided in subsection
{ - (2) - } { + (3) + }of this section, moneys, once
deposited in the highway fund { - established under ORS
366.505, from all of - } { + from + } the following sources are
subject to the use or pledge described { - by - } { + in
subsection (1) of + } this section:
(a) Moneys from the taxes and fees on motor carriers imposed
under ORS 825.474 and 825.480.
(b) Moneys from the tax on motor vehicle fuel imposed under ORS
319.020.
(c) Moneys from the tax on fuel used in motor vehicles imposed
under ORS 319.530.
(d) Moneys described under ORS 803.090 from the titling of
vehicles.
(e) Moneys described under ORS 803.420 from the registration of
vehicles.
(f) Moneys described under ORS 807.370 relating to the issuance
of driver licenses and driver permits.
(g) Moneys received by the Department of Transportation from
taxes, fees or charges imposed after January 1, 2001, or other
revenues received by the department from sources not listed in
paragraphs (a) to (f) of this subsection that are available for
the use or pledge described by this section.
{ - (h) Any other moneys legally available to the department
for the use or pledge described in this section. - }
{ - (2) - } { + (3) + } Moneys described under subsection
{ - (1) - } { + (2) + } of this section do not include
{ - any moneys described in the following - } :
(a) Moneys provided for appropriations to counties under ORS
366.525 to 366.540.
(b) Moneys provided for appropriations to cities under ORS
366.785 to 366.820.
(c) Moneys in the account established under ORS 366.512 for
parks and recreation. { +
(4) To the extent affirmatively pledged, moneys from the
following sources are subject to the use or pledge described in
subsection (1) of this section:
(a) Moneys received by the Department of Transportation from
the United States government.
(b) Any other moneys legally available to the department. + }
{ - (3) - } { + (5) + } Notwithstanding ORS 366.507, the
lien or charge of any pledge of moneys securing bonds issued
under ORS 367.615 or 367.670 { - shall be - } { + is + }
superior or prior to any other lien or charge and to any law of
the state requiring the department to spend moneys for specified
highway purposes.
SECTION 25. ORS 367.615 is amended to read:
367.615. In addition to any authority the Department of
Transportation has to issue and sell bonds { + , the department
may issue and sell revenue bonds known as Highway User Tax Bonds
as provided in this section: + } { - and other similar
obligations, this section establishes continuing authority for
Enrolled House Bill 2213 (HB 2213-INTRO) Page 11
the department to issue and sell bonds and other similar
obligations in a manner consistent with this section. The
following apply to the authority granted by this section: - }
{ - (1) Any reference to bonds issued under this section
includes a reference to bonds or other similar obligations. - }
{ - (2) The bonds may be referred to as Highway User Tax
Bonds. - }
{ - (3) - } { + (1) + } Bonds issued under this section do
not constitute a debt or general obligation of this state or any
political subdivision of this state but are { + secured and + }
payable from moneys described under ORS 367.605 { + . + }
{ - and 367.610 and secured solely by moneys described under ORS
367.605. No holder of bonds or other similar obligations - }
{ + A holder of bonds + }issued under this section
{ - shall have the right to - } { + may not + } compel the
exercise of the ad valorem taxing power of the state to pay
{ - principal and interest on such bonds or other similar
obligations - } { + the bond debt service on the bonds + }.
{ - (4) - } { + (2) + } This state shall provide for the
continued assessment, levy, collection and deposit into the
highway fund moneys described under ORS 367.605 in amounts
sufficient to pay, when due, the annual { + bond + } debt
service { - charges - } and other amounts necessary to meet
requirements established by indenture under ORS 367.640.
{ - (5) - } { + (3) + } This state { - shall - }
{ + may + } not in any way impair obligations of any agreement
between this state and the holders of bonds issued under this
section.
{ - (6) - } { + (4) + } The authority granted by this
section is continuing and the department reserves the right,
through and with the prior approval of the State Treasurer, to
issue additional bonds under this section subject to the
following:
(a) Additional bonds { - shall - } { + must + } be secured
equally and ratably by the pledge and appropriation of moneys
described under ORS 367.605 { - or secured separately by a
portion of such moneys subject only to the pledge of a particular
portion of such moneys to secure particular bonds issued under
this section - } { + unless the department, as permitted by law
and the contracts with owners of outstanding Highway User Tax
Bonds, issues additional bonds in different series and secures
each series by a lien on and pledge of moneys described under ORS
367.605 that is superior to or subordinate to the lien of the
pledge securing any other series of Highway User Tax Bonds + }.
(b) { + The department may only issue + } additional bonds
{ - shall only be issued - } if sufficient moneys described
under ORS 367.605 may be pledged to pay the annual { + bond + }
debt service for all outstanding bonds issued under this section
as well as for the additional bonds.
{ - (7) - } { + (5) + } Proceeds from the sale of bonds
under this section are declared to be for the purpose of building
and maintaining
{ - of - } permanent public roads and may be used { - as
described under any of the following - } :
(a) To finance the cost of state highway, county road and city
street projects in this state.
(b) To pay the cost of issuing the bonds.
(c) For loans to cities and counties as provided under ORS
{ + 367.035 or + } 367.655.
{ + (d) To pay the bond debt service of the bonds.
Enrolled House Bill 2213 (HB 2213-INTRO) Page 12
(e) To pay the costs of the State Treasurer and the department
to administer and maintain the bonds and the Highway User Tax
Bond program, including the cost of consultants, advisors,
attorneys or other professional service providers appointed,
retained or approved by the treasurer or the department.
(f) To pay capitalized interest, principal or premium, if any,
of the bonds.
(g) For rebates or penalties due to the United States in
connection with the bonds.
(6) The department may issue Highway User Tax Bonds as capital
appreciation bonds, auction rate bonds, variable rate bonds, deep
discount bonds or deferred interest bonds.
(7) The State Treasurer or the Director of Transportation, if
so directed by the treasurer, may obtain credit enhancement or an
agreement for exchange of interest rates to provide additional
security or liquidity for the bonds or to provide funding, in
lieu of cash, for all or a portion of a bond debt service reserve
account established with respect to the bonds. + }
SECTION 26. ORS 367.635 is amended to read:
367.635. { - This section establishes provisions relating to
the sale of bonds under ORS 367.615, as follows: - }
(1) { - Each bond issued shall - } { + A bond issued under
ORS 367.615: + } { +
(a) Must + }contain on its face a statement that the ad
valorem taxing power of this state or any political subdivision
of this state is not pledged to the payment of the principal or
the interest on the bond.
{ - (2) - } { + (b) + } { - The bonds - } May be sold at
public competitive bid or at private negotiated sale.
{ - (3) - } { + (c) + } { - Bonds - } May be sold at the
price or prices established by the State Treasurer, upon the
advice of the Department of Transportation.
{ - (4) - } { + (d) + } { - No bonds issued shall mature
at a time exceeding 30 years from the date of issuance - } { +
Must mature on or before a date determined by calculation of the
expected economic life of the improvements, assets and projects
financed with the proceeds of the bonds + }. Subject to this
{ - subsection - } { + paragraph + }, the time bonds mature
may be as established by indenture under ORS 367.640.
{ - (5) - } { + (2) + } The State Treasurer shall
determine { + , upon the advice of the department and consistent
with ORS 288.805 to 288.945, + } all aspects relating to the sale
of bonds under ORS 367.615 that are not otherwise specifically
provided, including rate of interest and discount, if any.
{ - Any determination made under this subsection shall be upon
the advice of the department and shall be consistent with the
provisions of ORS 288.805 to 288.945 relating to issuance of
bonds by this state. - }
SECTION 27. ORS 367.640 is amended to read:
367.640. An indenture under which bonds described under ORS
367.615 are issued may provide for any or all of the following:
(1) The pledging of moneys or a portion of moneys described
under ORS 367.605 to the payment of the { - principal, interest
or redemption premium, if any, - } { + bond debt service + } on
bonds issued under ORS 367.615.
(2) Requirements concerning particular issues of bonds under
ORS 367.615.
(3) Requirements concerning moneys described under ORS 367.605
{ - and 367.610 - } and payment on outstanding bonds issued
under ORS 367.615.
Enrolled House Bill 2213 (HB 2213-INTRO) Page 13
(4) A contractual undertaking for the benefit of bondholders
concerning assessment, levy collection and deposit of moneys
described under ORS 367.605.
(5) Provisions concerning the registration of bonds or
recording or filing of the indenture.
(6) Provisions relating to a reserve account under ORS 367.645.
Provisions under this subsection may include, but are not limited
to, the amount required for such account or provisions for
replenishing the account from moneys described under ORS 367.605.
(7) Provisions concerning trustees under ORS 367.650 { - , - }
including { + , + } but not limited to { - the following - } :
(a) Establishing funds, accounts or moneys described under ORS
367.605 over which the trustee will be custodian.
(b) Providing that a trustee will be appointed.
(8) { - Establish - } { + Establishing + } the maturation
date for the bonds, subject to ORS 367.635.
SECTION 28. ORS 367.645 is amended to read:
367.645. The Department of Transportation may establish a
separate reserve account to provide additional security for bonds
issued under ORS 367.615. The following apply to any account
established under this section:
(1) The account may be established as part of the highway fund
or separately.
(2) The establishment of an account does not, in itself, limit
the payment of { + bond + } debt service for bonds issued under
ORS 367.615 to moneys in the account. { + Bond + } debt service
for bonds issued under ORS 367.615 may be paid from any moneys
under ORS 367.605 { - and 367.610 - } , whether or not an
account is established, unless otherwise provided by indenture
under ORS 367.640.
(3) The account is subject to any provisions established by
indenture under ORS 367.640 concerning the amount of money in the
account or the replenishing of moneys if the account is drawn
down at any time while bonds are outstanding.
(4) The account is subject to any other provisions concerning
the account that are established by indenture under ORS 367.640.
SECTION 29. ORS 367.655 is amended to read:
367.655. (1) Notwithstanding any other provision of law or any
provision of charter or local ordinance to the contrary:
(a) The Department of Transportation may loan a portion of
proceeds from bonds issued under ORS 367.615 to cities and
counties; and
(b) Cities and counties may borrow moneys under this section.
(2) Any loan made under this section is subject to all of the
following provisions:
(a) Moneys from the loan may only be used to defray costs of
location, relocation, improvements, construction and
reconstruction of city and county streets and roads.
(b) The department shall establish rules concerning the making
of agreements for the loans. Repayment of principal and interest
by any city or county { - shall - } { + must + } be made
according to the agreement between the department and the city or
county { - that is made under the rules - } .
(c) If a city or county defaults of repayment, the department
may withhold any part of the appropriation { + or allocation + }
to the city under ORS 366.785 to 366.820 or the county under ORS
366.525 { + + } to 366.540 as provided for in the agreement for
repayment made under this section.
SECTION 30. ORS 367.660 is amended to read:
Enrolled House Bill 2213 (HB 2213-INTRO) Page 14
367.660. If moneys under ORS 367.605 are pledged for purposes
of bonds by indenture under ORS 367.640 { + , + } a lien is
established upon the moneys. A lien established by this section
is subject to all of the following:
(1) The lien { - shall be - } { + is + } a first lien and
security interest and prior charge upon the pledged moneys { +
except to the extent provided otherwise by the indenture + }.
(2) The lien is valid and binding from the time the pledge is
made.
(3) The pledged moneys are immediately subject to the lien
without physical delivery or further act.
(4) The lien is valid and binding against all parties having
claims on the money of any kind including claims under tort or
contract.
(5) The lien is valid and binding against all parties
irrespective of whether the parties have notice of the lien.
(6) No bond, indenture or any other instrument by which the
pledge is made or the lien created must be recorded or filed
except as provided by the indenture under ORS 367.640.
SECTION 31. ORS 367.705 is amended to read:
367.705. (1) { + The Department of Transportation shall make
loans to cities and counties from + } funds available under ORS
367.700 to 367.750 { - shall be made available by the
Department of Transportation to cities and counties to be
advanced to defray costs of location, relocation, improvements,
construction and reconstruction of city and county streets and
roads and of acquisition, development, maintenance and care of
public park and recreation facilities - } { + for the purposes
stated in section 3a, Article IX of the Oregon Constitution + }.
(2) If funds available under ORS 367.700 to 367.750 are not
sufficient to fund all projects for which funds are applied by
cities and counties, the department shall give priority to
projects in cities and counties having the highest rates of
unemployment in this state.
SECTION 32. ORS 367.710 is amended to read:
367.710. (1) { + The Department of Transportation shall cause
cities and counties that receive funds under ORS 367.705 to repay
bond debt service + } { - repayment of principal and interest
by the cities and counties who receive funds under ORS 367.705
shall be made - } by withholding from payments due to the city
{ + under ORS 366.785 to 366.820 + } or { + to the + } county
under ORS 366.525 to 366.540. Funds withheld under this
subsection remain in the State Highway Fund available for the
purposes authorized by law.
(2) The Department of Transportation shall fix the rate of
interest to be charged on any advance made under ORS 367.705.
SECTION 33. ORS 367.715 is amended to read:
367.715. All bonds issued under ORS 367.700 to 367.750
{ - shall - } { + must + } be issued in accordance with ORS
286.031 to { - 286.041 - } { + 286.066 + }.
SECTION 34. ORS 367.745 is amended to read:
367.745. The Department { + of Transportation + } shall
compute and determine in January of each year, after the sale of
bonds under ORS { - 367.550 to 367.600 - } { + 367.700 to
367.750 + }, the amount of
{ - principal and interest which - } { + bond debt service
that + } will fall due during such year on bonds then outstanding
and unpaid and shall maintain or hold in the State Highway Fund
sufficient moneys to pay such maturing obligations.
SECTION 35. ORS 367.750 is amended to read:
Enrolled House Bill 2213 (HB 2213-INTRO) Page 15
367.750. { - No bonds shall be issued or sold under ORS
367.700 to 367.750 nor indebtedness incurred thereunder,
which - } { + The Department of Transportation may not issue or
sell general obligation bonds under ORS 367.700 to 367.750
that, + } singly or in the aggregate with previous debts or
liabilities incurred for the building and maintaining of
permanent roads { + , + } { - shall - } exceed any limitation
provided in the Oregon Constitution at the date of the issuance
and sale of such bonds.
SECTION 36. ORS 286.051 is amended to read:
286.051. (1) At the discretion of the State Treasurer,
refunding bonds or advance refunding bonds, as provided for in
ORS 288.605 to 288.695, may be issued. The bonds may be refunded
either prior to or at their maturity dates. Refunding bonds may
be issued in the same manner as other bonds are issued under the
terms of ORS 286.010 to 286.078, 287.018, 288.020, 293.701,
351.315, 351.345 to 351.460, 351.545, { - 367.234, 367.258,
367.370 to 367.430, - } 367.555, 367.565, 367.700, 367.715,
391.140, 407.415, 407.515, 456.519, 456.645, 456.650, 456.670,
468.195, 470.220, 530.130, 530.230, 541.780 and 541.785 { + and
sections 2 to 10 of this 2003 Act + }. Refunding bonds may be
issued to refund bonds originally issued or to refund bonds
previously issued for refunding purposes.
(2) If the governing body or administrative head of the state
agency so elects, and the State Treasurer approves, bonds may be
issued with the option upon the part of the state to redeem the
bonds, with or without premium, in such order, and at such time
or times prior to the final maturity date or dates of the bonds.
(3) If all the bonds being redeemed are not in registered form,
at least one notice of the intended redemption of the bonds shall
be published in one issue of a newspaper specializing in
financial matters published in the city in which the bonds by
their terms are made payable, and of at least one such notice in
a newspaper of general circulation in Portland, Oregon. Notice
shall be published at least 30 days before the redemption date.
SECTION 37. ORS 286.061 is amended to read:
286.061. (1) All bonds issued under ORS 286.010 to 286.078,
287.018, 288.020, 293.701, 351.315, 351.345 to 351.460, 351.545,
{ - 367.234, 367.258, 367.370 to 367.430, - } 367.555,
367.565, 367.700, 367.715, 407.415, 407.515, 456.519, 468.195,
470.220, 530.130, 530.230, 541.780 and 541.785 shall be direct
general obligations of the State of Oregon, in negotiable form,
and shall embody an absolute promise to pay the amounts thereof
in any coin or currency which, at the time of payment, is legal
tender for the payment of public and private debts within the
United States of America.
(2) The bonds shall be executed with a facsimile signature of
the Governor and Secretary of State and the manual or facsimile
signature of the State Treasurer or Deputy State Treasurer in
accordance with ORS 288.540. The bonds shall be issued as bearer
coupon bonds or in registered form, either as to principal or
interest, or both.
(3) Not less than 20 days before the payment of the principal
or interest falls due on any of the bonds, the respective program
shall prepare and submit to the State Treasurer, for
verification, a claim duly approved by the agency for the amount
necessary to meet the payment thereof. Upon such verification,
the agency shall present the claim in like manner as other claims
against the state are presented. The claim shall be paid out of
moneys provided by law for its payment.
Enrolled House Bill 2213 (HB 2213-INTRO) Page 16
(4) Notwithstanding any other provision of law, when bonds,
obligations or other evidence of indebtedness are sold the
proceeds may be used to pay attorney, consultant and other
professional fees and other expenses incurred in the preparation,
authorization, issuance, sale and delivery of, and in all
proceedings relating to such bonds, obligations or other evidence
of indebtedness.
(5) The State Treasurer may establish funds and accounts
separate and distinct from the General Fund as may be authorized
by law or reasonably required to protect the bond proceeds and to
arrange for their redemption.
SECTION 38. ORS 366.542 is amended to read:
366.542. (1) Moneys paid to counties under ORS
{ - 366.524 - } { + 366.525 + } to 366.540 shall be used only
for the purposes stated in sections 3 and 3a, Article IX of the
Oregon Constitution { + , + } and the statutes enacted pursuant
thereto including ORS 366.514.
(2) Counties receiving moneys under ORS { - 366.524 - }
{ + 366.525 + } to 366.540 shall report annually to the
Legislative Assembly the expenditures of those moneys in each of
the following areas:
(a) Administration;
(b) Bicycle paths;
(c) Construction and expansion;
(d) Operations and maintenance;
(e) Other payments;
(f) Payments to other governments; and
(g) Repair and preservation.
(3) The Association of Oregon Counties shall make an annual
report to the Legislative Assembly presenting the information
required by subsection (2) of this section. The report shall be
made to the committees of the Legislative Assembly with primary
jurisdiction over transportation matters.
(4) For the purposes of subsection (2) of this section, each
county shall account for moneys paid to the county under ORS
{ - 366.524 - } { + 366.525 + } to 366.540 separately from
any other county moneys.
SECTION 39. { + ORS 367.226, 367.228, 367.230, 367.232,
367.234, 367.236, 367.238, 367.242, 367.258, 367.370, 367.415,
367.430, 367.550 and 367.610 are repealed. + }
SECTION 40. { + ORS 367.010, 367.015, 367.020, 367.025,
367.030, 367.035, 367.040, 367.050, 367.060, 367.066, 367.067,
367.555, 367.560, 367.565, 367.595, 367.600, 367.622, 367.623,
367.700, 367.705, 367.710, 367.715, 367.745 and 367.750 are added
to and made a part of ORS chapter 367. + }
SECTION 41. { + 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 on
its passage. + }
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Enrolled House Bill 2213 (HB 2213-INTRO) Page 17
Passed by House March 20, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 12, 2003
...........................................................
President of Senate
Enrolled House Bill 2213 (HB 2213-INTRO) Page 18
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2213 (HB 2213-INTRO) Page 19