72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 3659
Sponsored by COMMITTEE ON REVENUE
CHAPTER ................
AN ACT
Relating to state finance; creating new provisions; amending ORS
238.225, 238.694, 283.085, 283.087 and 283.089; appropriating
money; limiting expenditures; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 6 of this 2003 Act are added to
and made a part of ORS chapter 286. + }
SECTION 2. { + As used in sections 2 to 6 of this 2003 Act,
unless the context requires otherwise:
(1) 'Article XI-O bonds' means general obligation bonds or
other general obligation indebtedness issued or incurred under
the authority of Article XI-O of the Oregon Constitution.
(2) 'Bond administration fund' means the Article XI-O Bond
Administration Fund established under section 5 of this 2003 Act.
(3) 'Bond fund' means the Article XI-O Bond Fund established
under section 4 of this 2003 Act.
(4) 'Bond-related costs' means:
(a) The costs of paying the principal of, the interest on and
the premium, if any, on Article XI-O bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-O bonds including, but not limited to,
redeeming Article XI-O bonds, paying amounts due in connection
with bond insurance, other credit enhancements or the
administrative costs and expenses of the State Treasurer and the
Oregon Department of Administrative Services, including costs of
consultants or advisors retained by the State Treasurer or the
Oregon Department of Administrative Services for the purpose of
issuing, administering or maintaining Article XI-O bonds;
(c) Capitalized interest on Article XI-O bonds;
(d) Costs of funding reserves for Article XI-O bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-O bonds; and
(f) Other costs or expenses that the State Treasurer or the
Director of the Oregon Department of Administrative Services
determines are necessary or desirable in connection with issuing,
administering or maintaining Article XI-O bonds.
(5) 'State agency' means a state officer, board, commission,
corporation, institution, department or other state organization
that has officers or employees participating in the Public
Employees Retirement System. + }
SECTION 3. { + (1) Article XI-O bonds are a general obligation
of the State of Oregon and must contain a direct promise on
Enrolled House Bill 3659 (HB 3659-A) Page 1
behalf of the State of Oregon to pay the principal of, the
interest on and the premium, if any, on the Article XI-O bonds.
The State of Oregon shall pledge its full faith and credit and
taxing power to pay Article XI-O bonds; however, the ad valorem
taxing power of the State of Oregon may not be pledged to pay
Article XI-O bonds.
(2) The State Treasurer may issue Article XI-O bonds:
(a) To finance all or a portion of the state's pension
liabilities for retirement, health care or disability benefits,
in an amount that produces net proceeds that do not exceed the
State Treasurer's estimate of those liabilities based on
information provided to the State Treasurer by the Public
Employees Retirement System, plus an amount determined by the
State Treasurer to pay estimated bond-related costs. If Article
XI-O bonds are issued for a purpose described in this paragraph,
the Director of the Oregon Department of Administrative Services
shall allocate the bond-related costs of those Article XI-O bonds
among affected state agencies based on their payroll costs and
shall bill those state agencies for an appropriate share of the
bond-related costs on a monthly or other periodic basis. A state
agency receiving a bill under this paragraph shall pay the
amounts billed from the first moneys legally available to the
state agency after paying the costs incurred for obligations
under ORS 283.085 to 283.092.
(b) To refund Article XI-O bonds. The amount of Article XI-O
bonds issued under this paragraph may not exceed the estimated
costs of paying, redeeming or defeasing the refunded bonds, plus
an amount determined by the State Treasurer to pay estimated
bond-related costs. If Article XI-O bonds are issued under this
paragraph, the Director of the Oregon Department of
Administrative Services shall bill a state agency that was
responsible for payment of the refunded bonds for an appropriate
share of the bond-related costs on a monthly or other periodic
basis. A state agency receiving a bill under this paragraph shall
pay the amounts billed from the first moneys legally available to
the state agency after paying the costs incurred for obligations
under ORS 283.085 to 283.092.
(3) The net proceeds of Article XI-O bonds issued to finance
all or a portion the state's pension liabilities for retirement,
health care or disability benefits must be transferred to the
Public Employees Retirement Board for deposit in the Public
Employees Retirement Fund established under ORS 238.660. + }
SECTION 4. { + (1) The Article XI-O Bond Fund is established
in the State Treasury, separate and distinct from the General
Fund. Interest earned on the bond fund must be credited to the
bond fund. Amounts credited to the bond fund are continuously
appropriated to the Oregon Department of Administrative Services
for the purpose of paying, when due, the principal of, the
interest on and the premium, if any, on outstanding Article XI-O
bonds. The Oregon Department of Administrative Services shall
credit to the bond fund:
(a) Capitalized or accrued interest on Article XI-O bonds;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond fund;
(c) Reserves established for the payment of Article XI-O bonds;
and
(d) Amounts received in payment of a bill for bond-related
costs in amounts and at times so that sufficient moneys are
available in the bond fund to pay the principal of, the interest
on and the premium, if any, on Article XI-O bonds when due.
Enrolled House Bill 3659 (HB 3659-A) Page 2
(2) The department may create separate accounts in the bond
fund for reserves and debt service for each series of Article
XI-O bonds. + }
SECTION 5. { + (1) The Article XI-O Bond Administration Fund
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned on the bond administration fund
must be credited to the bond administration fund. Amounts
credited to the bond administration fund are continuously
appropriated to the Oregon Department of Administrative Services
for payment of bond-related costs. The department shall credit to
the bond administration fund:
(a) Proceeds of Article XI-O bonds that were issued to pay
bond-related costs that are not credited to the bond fund;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond administration fund;
and
(c) Amounts received in payment of a bill for bond-related
costs that are not credited to the bond fund.
(2) The department may create separate accounts in the bond
administration fund. + }
SECTION 6. { + (1) In accordance with the applicable
provisions of this chapter and ORS chapter 288, the State
Treasurer, after consulting with the Director of the Oregon
Department of Administrative Services, may issue Article XI-O
bonds from time to time for the purposes described in section 3
(2) of this 2003 Act.
(2) Article XI-O bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable in or excludable from
gross income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of bonds in
series, the maturity of each series and the interest borne by
each series of bonds.
(3) Subject to the approval of the State Treasurer, the
Director of the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a
line of credit, surety bonds or another credit enhancement device
for Article XI-O bonds; and
(b) Enter into related agreements.
(4) Subject to the approval of the State Treasurer, the
Director of the Oregon Department of Administrative Services may:
(a) Enter into agreements with a trustee or escrow agent
regarding the use and application of the amounts held in the
Article XI-O Bond Fund or the Article XI-O Bond Administration
Fund; and
(b) Transfer amounts credited to the bond fund or the bond
administration fund to a trustee or escrow agent. + }
SECTION 7. ORS 238.225, as amended by section 1, chapter 9,
Oregon Laws 2002, and section 1, chapter 5, Oregon Laws 2002
(third special session), is amended to read:
238.225. (1) A participating public employer shall, at
intervals designated by the Public Employees Retirement Board,
transmit to the board those amounts the board determines to be
actuarially necessary to adequately fund the benefits to be
provided by the contributions of the employer under this chapter.
From time to time, the board shall determine the liabilities of
the system and shall set the amount of contributions to be made
by participating public employers, and by other public employers
who are required to make contributions on behalf of members, to
Enrolled House Bill 3659 (HB 3659-A) Page 3
ensure that those liabilities will be funded no more than 40
years after the date on which the determination is made.
(2) For the purpose of the actuarial computation required under
subsection (1) of this section:
(a) The school districts of the state shall be grouped together
and regarded as a single employer; and
(b) All community college districts and the state shall be
grouped together and regarded as a single employer.
(3) For the purpose of the actuarial computation required under
subsection (1) of this section, any participating public employer
may elect to be grouped with the state and all community college
districts and treated as a single employer for actuarial purposes
only. An election under this subsection may be made only by
participating public employers other than school districts and
community college districts. Any public employer that makes an
election under this subsection may not revoke the election.
(4) The computation of the contributions of a participating
public employer that makes an election under the provisions of
subsection (3) of this section shall be based only on the
liabilities of the employer that are incurred after the effective
date of the employer's election. The board shall separately
compute the contribution of the employer for the liabilities
incurred by the employer before the effective date of the
employer's election.
(5) A participating public employer may make an election under
subsection (3) of this section only by the adoption of a
resolution or ordinance by the governing body of the public
employer.
(6) Except as provided in subsection (2) of this section, the
board may not require that any participating public employer be
grouped with any other participating public employer for the
purpose of the actuarial computation required under subsection
(1) of this section. If two participating public employers merge
or otherwise consolidate, and one of the public employers has
made an election under subsection (3) of this section:
(a) The board may not require that the public employer that is
the product of the consolidation be grouped with the state and
all community college districts unless the public employer makes
an election under subsection (3) of this section; and
(b) The board may require that the public employer that is the
product of the consolidation make contributions based on the
group rate only for those members for whom contributions based on
the group rate were made before the consolidation.
(7) Except as provided in this section, the board may not group
participating public employers for the purpose of the actuarial
computation required by subsection (1) of this section.
(8) If a public employer is grouped with any other public
employer for the purpose of the actuarial computation required
under subsection (1) of this section { - , - } and the
individual public employer makes a lump sum payment that is in
addition to the normal contribution of the public employer
{ - and that is designated for application only against accrued
unfunded liabilities attributable to the employees of the
individual public employer - } , the board shall adjust the
amount of contributions to be made by the individual public
employer to ensure that the benefit of the lump sum payment
accrues only to the individual public employer making the
payment. An individual public employer that makes a lump sum
payment under the provisions of this subsection shall remain
grouped with other public employers as provided in this section
Enrolled House Bill 3659 (HB 3659-A) Page 4
for the purpose of all liabilities of the employer that are not
paid under this subsection. The board by rule may establish a
minimum lump sum payment that must be made by an individual
public employer before adjusting contributions under this
subsection. Notwithstanding any minimum lump sum payment
established by the board, the board must allow an individual
public employer to make a lump sum payment under the provisions
of this subsection if the payment is equal to the full amount of
the individual public employer's accrued unfunded liabilities.
(9) The board shall establish a separate account within the
fund for each lump sum payment made under subsection (8) of this
section or made by any other participating public employer that
is not grouped with other public employers under this section.
The board shall credit to each account all interest and other
income received from investment of the account funds during the
calendar year { - , less any amounts withheld from earnings for
administrative expenses under ORS 238.610 or paid into the
reserve account established under ORS 238.670 (1) - } .
{ + Except as provided in subsection (10) of this section, the
board may not collect any administrative expense or other charge
from the account or from earnings on the account. + } The account
shall be used to offset contributions that the public employer
would otherwise be required to make for the liabilities against
which the lump sum payment is applied.
{ + (10) The board may charge a participating public employer
expenses for administration of an account established under
subsection (9) of this section in an amount not to exceed $2,500
during the year in which the account is established and the
immediately following two calendar years, and in an amount not to
exceed $1,000 in all subsequent years. + }
{ - (10) - } { + (11) + } If a participating public
employer has any liabilities that are attributable to creditable
service by employees of the employer before the participating
public employer was grouped with other public employers, whether
under the provisions of this section or pursuant to board rule,
any lump sum payment made under subsection (8) of this section
must be applied first against those liabilities, with the oldest
such liability being paid first. Any amounts remaining after
application under this subsection must be deposited in a separate
account established under subsection (9) of this section.
SECTION 8. ORS 238.694 is amended to read:
238.694. (1) The Legislative Assembly finds that authorizing
issuance of limited tax bonds or revenue bonds to finance pension
liabilities may reduce the cost of public pensions to taxpayers
and that the reduction of those costs to taxpayers is a matter of
statewide concern.
(2) Notwithstanding any limitation on indebtedness or borrowing
under state or local law, for the purpose of obtaining funds to
pay the pension liability of a governmental unit, the governing
body of a governmental unit may authorize and cause the issuance
of limited tax bonds as defined in ORS 288.150, revenue bonds
authorized by charter or pursuant to ORS 288.805 to 288.945, or
any combination of those bonds. The governing body of a
governmental unit may pledge the full faith and credit and taxing
power of the governmental unit to the payment of the principal
and interest on bonds issued under ORS 238.692 to 238.698, and
any premium on those bonds.
(3) Limited tax bonds authorized under this section must be
issued in the manner prescribed by ORS chapters 287 and 288 for
the issuance of limited tax bonds. A county may not issue limited
Enrolled House Bill 3659 (HB 3659-A) Page 5
tax bonds under this section for an amount that exceeds five
percent of the real market value of the taxable property within
the boundaries of the county.
(4) Revenue bonds authorized under this section need not comply
with the procedure specified in ORS 288.815.
(5) A governmental unit that issues limited tax bonds or
revenue bonds under this section may also issue limited tax bonds
or revenue bonds for the purpose of refunding the bonds.
(6) A governmental unit may enter into indentures or other
agreements with trustees or escrow agents for the issuance,
administration or payment of bonds authorized under this section.
{ - (7) The state may not issue bonds under the provisions of
this section. - }
SECTION 9. ORS 283.085 is amended to read:
283.085. As used in ORS 283.085 to 283.092, 286.515 and
286.525:
(1) 'Available funds' means funds appropriated or otherwise
made available by the Legislative Assembly to pay amounts due
under a financing agreement for the fiscal period in which the
payments are due, together with any unexpended proceeds of the
financing agreement, and any reserves or other amounts which have
been deposited in trust to pay amounts due under the financing
agreement.
(2) 'Credit enhancement agreement' means any agreement or
contractual relationship between the state and any bank, trust
company, insurance company, surety bonding company, pension fund
or other financial institution providing additional credit on or
security for a financing agreement or certificates of
participation authorized by ORS 283.085 to 283.092, 286.515 and
286.525.
(3) 'Director' means the Director of the Oregon Department of
Administrative Services.
(4)(a) 'Financing agreement' means a lease purchase agreement,
an installment sale agreement, a loan agreement or any other
agreement:
(A) To finance real or personal property that is or will be
owned and operated by the state or any of its agencies;
(B) To finance infrastructure related to a facility that is
owned and operated by the state;
(C) To finance infrastructure components that are owned or
operated by a local government agency of this state if the
director determines that financing the infrastructure will
facilitate the construction or operation of an adult or juvenile
corrections facility or a public safety training facility owned
and operated by the state or any of its agencies; { - or - }
{ + (D) To finance all or a portion of the state's pension
liabilities for retirement, health care or disability benefits,
in an amount that produces net proceeds that do not exceed the
State Treasurer's estimate of those liabilities based on
information provided to the State Treasurer by the Public
Employees Retirement System; or + }
{ - (D) - } { + (E) + } To refinance previously executed
financing agreements.
(b) As used in this subsection, 'infrastructure' includes, but
is not limited to, sewer and water systems and road improvements.
(5) 'Personal property' means tangible personal property,
software and fixtures.
(6) 'Property rights' means, with respect to personal property,
the rights of a secured party under ORS chapter 79, and, with
Enrolled House Bill 3659 (HB 3659-A) Page 6
respect to real property, the rights of a trustee or lender under
a lease authorized by ORS 283.089 (5).
(7) 'Software' means software and training and maintenance
contracts related to the operation of computing equipment.
(8) 'Treasurer' means the State Treasurer.
SECTION 10. ORS 283.087 is amended to read:
283.087. With the approval of the State Treasurer, the Director
of the Oregon Department of Administrative Services may enter
into financing agreements in accordance with ORS 283.085 to
283.092, 286.515 and 286.525, upon such terms as the director and
the treasurer find to be advantageous to the state. Financing
agreements shall be subject to the following limitations:
(1) Amounts payable by the state under a financing agreement
shall be limited to available funds. In no circumstance shall the
state be obligated to pay amounts due under a financing agreement
from any source other than available funds. If there are
insufficient available funds to pay amounts due under a financing
agreement, the lender may exercise any property rights which the
state has granted to it in the financing agreement, against the
property which was purchased with the proceeds of the financing
agreement, and apply the amounts so received toward payments
scheduled to be made by the state under the financing agreement.
(2) No property rights may be granted in property unless the
property is being acquired, substantially improved or refinanced
with the proceeds of a financing agreement, or is land on which
such property is located.
(3) For periods after June 30, 1989, the principal amount of
financing agreements entered into by the state pursuant to ORS
283.085 to 283.092, 286.515 and 286.525 shall be treated as an
amount of bonds and shall be subject to the provisions of ORS
286.505 to 286.545.
(4) The limitations of subsection (3) of this section shall not
apply to financing agreements which are used to refinance
previously executed financing agreements. The expenditure of
funds used to finance previously executed financing agreements
and pay the costs incurred to issue the new financing agreements
shall be recorded using administrative budget limitations.
(5) The state or any state agency shall not enter into
financing agreements under any provision of law other than ORS
283.085 to 283.092, 286.515 and 286.525 if the principal amount
of the financing agreement, together with the principal amount of
any financing agreement previously issued by the state or a state
agency for the same project, exceeds $100,000.
(6) Upon the request and with the approval of the Chief Justice
of the Supreme Court or the State Court Administrator, the
Director of the Oregon Department of Administrative Services may
enter into financing agreements in accordance with ORS 283.085 to
283.092, 286.515 and 286.525, on behalf of the Judicial
Department.
{ + (7) Financing agreements may bear interest that is
includable in, or is excludable from, gross income under the
Internal Revenue Code. + }
SECTION 11. ORS 283.089 is amended to read:
283.089. With the approval of the State Treasurer, the Director
of the Oregon Department of Administrative Services may:
(1) Enter into agreements with trustees to hold financing
agreement proceeds, payments and reserves as security for
lenders, and to issue certificates of participation in the right
to receive payments due from the state under a financing
agreement. Amounts held with a trustee shall be invested by the
Enrolled House Bill 3659 (HB 3659-A) Page 7
trustee at the direction of the treasurer. Interest earned on any
investments held by a trustee as security for a financing
agreement may, at the option of the director, be credited to the
accounts held by the trustee and applied in payment of sums due
under a financing agreement.
(2) Enter into credit enhancement agreements for financing
agreements or certificates of participation, provided that such
credit enhancement agreements shall be payable solely from
available funds and amounts received from the exercise of
property rights granted under such financing agreements.
(3) Use { + the gross proceeds of + } financing agreements
{ - to finance the costs of acquiring or refinancing property,
plus - } { + for the purposes described in ORS 283.085 (4) and
to pay + } the costs of reserves, credit enhancements and
{ + other + } costs associated with
{ - obtaining - } { + issuing, administering and
maintaining + } the financing.
(4) Use a single financing agreement to finance property to be
used by multiple state agencies.
(5) Subject to ORS 283.087 (2), grant leases of real property
with a trustee or lender. Such leases may be for a term which
ends on the date on which all amounts due under a financing
agreement have been paid or provision for payment has been made,
or 10 years after the last scheduled payment under a financing
agreement, whichever is later. Such leases may grant the trustee
or lender the right to evict the state and exclude it from
possession of the real property for the term of the lease if the
state fails to pay when due the amounts scheduled to be paid
under a financing agreement or otherwise defaults under a
financing agreement. Upon default, the trustee or lender may
sublease the land to third parties and apply any rentals toward
payments scheduled to be made under a financing agreement.
(6) Subject to ORS 283.087 (2), grant security interests in
personal property to trustees or lenders. Such security interests
shall attach and be perfected on the date the state takes
possession of the personal property, or the date the lender
advances money under a financing agreement, whichever is later. A
security interest authorized by this section shall have priority
over all other liens and claims. Upon default, the secured party
shall have the rights and remedies available to a secured party
under ORS chapter 79 for a first, perfected security interest in
goods and fixtures. No later than 10 days after a security
interest authorized by this section attaches, the state shall
cause a financing statement for the security interest to be filed
with the Secretary of State in the same manner as financing
statements are filed for goods; however, failure to file such a
statement shall not affect the perfection of the security
interest.
(7) Pledge for the benefit of trustees and lenders any amounts
which are deposited with a trustee in accordance with a financing
agreement. The pledge shall be valid and binding from the time it
is made, the amounts so pledged shall immediately be subject to
the lien of the pledge without filing, physical delivery or other
act, and the lien of the pledge shall be superior to all other
claims and liens of any kind whatsoever.
(8) Bill any state agency { - which - } { + that
+ }benefits from
{ - property acquired with the proceeds of - } a financing
agreement for an appropriate share of the financing costs,
including debt service, on a monthly or other periodic basis, and
Enrolled House Bill 3659 (HB 3659-A) Page 8
deposit payments received in connection with such billings with a
trustee as security for a financing agreement. Any state agency
receiving such a bill shall pay the amounts billed from the first
amounts legally available to it. { + The director shall allocate
in appropriate shares the financing costs of a financing
agreement entered into for the purpose described in ORS 283.085
(4)(a)(D) among all state agencies based on their payroll costs.
As used in this subsection, 'state agency' has the meaning given
that term in section 2 of this 2003 Act. + }
(9) Purchase fire and extended coverage or other casualty
insurance for property which is acquired or refinanced with
proceeds of a financing agreement, assign the proceeds thereof to
a lender or trustee to the extent of their interest, and covenant
to maintain such insurance while the financing agreement is
unpaid, so long as available funds are sufficient to purchase
such insurance.
SECTION 12. { + (1) The provisions of ORS 286.505 to 286.545
do not apply to Article XI-O bonds issued for the purposes
described in section 3 (2) of this 2003 Act during the biennium
beginning July 1, 2003.
(2) The provisions of ORS 286.505 to 286.545 do not apply to
obligations issued under ORS 283.085 (4)(a)(D) during the
biennium beginning July 1, 2003. + }
SECTION 13. { + (1) Notwithstanding ORS 283.087 (3), the
provisions of ORS 286.505 to 286.545 do not apply to financing
agreements issued during the biennium beginning July 1, 2003, for
the purpose described in ORS 283.085 (4)(a)(D).
(2) In the biennium beginning July 1, 2003, the Director of the
Oregon Department of Administrative Services, with the approval
of the State Treasurer, may enter into financing agreements:
(a) To finance all or a portion of the state's pension
liabilities for retirement, health care or disability benefits,
in an amount that produces net proceeds that do not exceed the
State Treasurer's estimate of those liabilities based on
information provided to the State Treasurer by the Public
Employees Retirement System, plus an amount determined by the
State Treasurer to pay the estimated costs of reserves, credit
enhancements and other costs associated with issuing,
administering and maintaining the financing.
(b) To refund financing agreements entered into under this
section. The amount of financing issued under this paragraph may
not exceed the estimated costs of paying, redeeming or defeasing
the refunded financing agreements, plus an amount determined by
the State Treasurer to pay the estimated costs of reserves,
credit enhancements and other costs associated with issuing,
administering and maintaining the financing.
(3) The net proceeds of financing agreements entered into for
the purpose described in ORS 283.085 (4)(a)(D) must be
transferred to the Public Employees Retirement Board for deposit
in the Public Employees Retirement Fund established under ORS
238.660. + }
SECTION 14. { + (1) If House Joint Resolution 18 (2003) is
approved by the people at the special election held throughout
this state on the date specified in section 2, chapter 592,
Oregon Laws 2003 (Enrolled House Bill 2651), notwithstanding any
other law limiting expenditures of the Oregon Department of
Administrative Services for the payment of expenses of the Oregon
Department of Administrative Services from fees, moneys or other
revenues, including Miscellaneous Receipts, but excluding lottery
funds and federal funds, for the biennium ending June 30, 2005,
Enrolled House Bill 3659 (HB 3659-A) Page 9
the limitation on expenditures for the Oregon Department of
Administrative Services established by chapter 389, Oregon Laws
2003 (Enrolled House Bill 5002), as modified by Emergency Board
action, if any, is increased for the purpose of implementing
sections 2 to 6 of this 2003 Act by:
(a) $191,164,785 for debt service; and
(b) $9,454,955 for bond-related costs.
(2) If House Joint Resolution 18 (2003) is not approved by the
people at the special election held throughout this state on the
date specified in section 2, chapter 592, Oregon Laws 2003
(Enrolled House Bill 2651), notwithstanding any other law
limiting expenditures of the Oregon Department of Administrative
Services for the payment of expenses of the Oregon Department of
Administrative Services from fees, moneys or other revenues,
including Miscellaneous Receipts, but excluding lottery funds and
federal funds, for the biennium ending June 30, 2005, the
limitation on expenditures for the Oregon Department of
Administrative Services established by chapter 389, Oregon Laws
2003 (Enrolled House Bill 5002), as modified by Emergency Board
action, if any, is increased for the purpose of financing, under
ORS 283.085 to 283.092, all or a portion of the state's pension
liabilities for retirement, health care or disability benefits
by:
(a) $196,200,647 for debt service; and
(b) $20,510,532 for the costs of reserves, credit enhancements
and other costs associated with issuing, administering and
maintaining the financing. + }
SECTION 15. { + (1) Sections 1, 2, 3, 4, 5, 6 and 12 of this
2003 Act become operative only if the amendment to the Oregon
Constitution proposed by House Joint Resolution 18 (2003) is
approved by the people at a special election held throughout this
state on the date specified in section 2, chapter 592, Oregon
Laws 2003 (Enrolled House Bill 2651).
(2) Sections 1, 2, 3, 4, 5, 6 and 12 of this 2003 Act become
operative on the effective date of the constitutional amendment
proposed by House Joint Resolution 18 (2003). + }
SECTION 16. { + 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. + }
----------
Passed by House August 8, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate August 14, 2003
...........................................................
President of Senate
Enrolled House Bill 3659 (HB 3659-A) Page 10
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 3659 (HB 3659-A) Page 11