72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 814
A-Engrossed
House Joint Resolution 18
Ordered by the House May 2
Including House Amendments dated May 2
Sponsored by Representatives SHETTERLY, WESTLUND; Representatives
AVAKIAN, BACKLUND, BARKER, BARNHART, BUTLER, HASS, HOPSON,
HUNT, MACPHERSON, PATRIDGE, WILLIAMS, WIRTH, Senators BURDICK,
CLARNO, COURTNEY, DECKERT, METSGER, RINGO, B STARR, WALKER (at
the request of State Treasurer Randall Edwards)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Proposes { - amendment - } { + revision + } to Oregon
Constitution to allow state to issue general obligation bonds to
provide matching funds to finance capital costs of
{ - prekindergarten through grade 12 public - } school
{ + district + } facilities { + and to pay costs of issuing
bonds. Creates school capital matching fund. Repeals school
capital matching subaccount + }. Specifies sources of moneys for
payment of indebtedness and interest.
Refers proposed { - amendment - } { + revision + } to
people for their approval or rejection at special election held
on same date as next primary election.
JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
Oregon, two-thirds of all the members of each house concurring:
PARAGRAPH 1. The Constitution of the State of Oregon is revised
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 State of Oregon may loan its credit
and incur indebtedness, in an aggregate outstanding principal
amount not to exceed, at any one time, one-half of one percent of
the real market value of the real property in the state, to
provide funds to finance the capital costs of school districts.
Bonds issued under this section may not be paid from ad valorem
property taxes.
(2) Indebtedness incurred under this section must be in the
form of general obligation bonds of the State of Oregon
containing a direct promise to pay the principal, interest and
premium, if any, of the bonds in an aggregate outstanding
principal amount not to exceed the amount authorized in
subsection (1) of this section. The bonds are the direct
obligation of the State of Oregon and must be in such form, run
for such periods of time, have such terms and bear such rates of
interest as may be provided by statute. The State of Oregon shall
pledge its full faith and credit and taxing power to the payment
of the principal, interest and premium, if any, of the bonds.
However, the State of Oregon may not pledge its ad valorem taxing
power to the payment of the bonds.
(3) The proceeds from bonds issued under this section may be
used only to provide matching funds to finance the capital costs
of school districts that have received voter approval for local
general obligation bonds and to provide for the costs of issuing
bonds, including the payment of debt service.
(4) The proceeds from bonds issued under this section may not
be used to finance the operating costs of school districts. + }
{ + SECTION 2. + } { + The principal, interest and premium,
if any, + } { + of the bonds issued under section 1 of this
Article must be repaid as determined by the Legislative Assembly
from the following sources:
(1) Amounts appropriated for repayment by the Legislative
Assembly from the General Fund, including taxes levied to pay the
bonds except ad valorem property taxes;
(2) Amounts appropriated or allocated for repayment by the
Legislative Assembly from other sources of revenue; or
(3) Any other available moneys. + }
{ + SECTION 3. + } { + Bonds issued under section 1 of this
Article may be refunded with bonds of like obligation. + }
{ + SECTION 4. + } { + (1) There is created a school capital
matching fund. Earnings on moneys in the fund shall be retained
in the fund or expended as provided by the Legislative Assembly.
(2) The Legislative Assembly may by law appropriate, allocate
or transfer moneys or revenue to the school capital matching
fund.
(3) To the extent funds are available, the Legislative Assembly
may appropriate, allocate or transfer moneys in the school
capital matching fund and earnings on moneys in the fund for the
purpose of providing state matching funds to school districts to
finance capital costs and providing the payment of debt service
for general obligation bonds issued pursuant to this Article. + }
{ + SECTION 5. + } { + As used in this Article, 'capital
costs' means costs associated with the acquisition, construction,
improvement, remodeling, maintenance or repair of prekindergarten
through grade 12 public schools in the State of Oregon, including
bond-related costs and costs of land, site preparation, permanent
or portable buildings, technology and equipment. + }
{ + SECTION 6. + } { + The Legislative Assembly may enact
legislation to carry out the provisions of this Article. + }
{ + SECTION 7. + } { + This Article supersedes any
conflicting provision of this Constitution. + }
PARAGRAPH 2. Section 4, Article XV of the Constitution of the
State of Oregon, is revised to read:
{ + Sec. 4. + } (1) Except as provided in subsections (2),
(3), (4),
{ - (10) - } { + (9) + } and { - (11) - } { + (10) + } of
this section, lotteries and the sale of lottery tickets, for any
purpose whatever, are prohibited, and the Legislative Assembly
shall prevent the same by penal laws.
(2) The Legislative Assembly may provide for the establishment,
operation, and regulation of raffles and the lottery commonly
known as bingo or lotto by charitable, fraternal, or religious
organizations. As used in this section, charitable, fraternal or
religious organization means such organizations or foundations as
defined by law because of their charitable, fraternal, or
religious purposes. The regulations shall define eligible
organizations or foundations, and may prescribe the frequency of
raffles, bingo or lotto, set a maximum monetary limit for prizes
and require a statement of the odds on winning a prize. The
Legislative Assembly shall vest the regulatory authority in any
appropriate state agency.
(3) There is hereby created the State Lottery Commission which
shall establish and operate a State Lottery. All proceeds from
the State Lottery, including interest, but excluding costs of
administration and payment of prizes, shall be used for any of
the following purposes: creating jobs, furthering economic
development, financing public education in Oregon or restoring
and protecting Oregon's parks, beaches, watersheds and critical
fish and wildlife habitats.
(4)(a) The State Lottery Commission shall be comprised of five
members appointed by the Governor and confirmed by the Senate who
shall serve at the pleasure of the Governor. At least one of the
Commissioners shall have a minimum of five years experience in
law enforcement and at least one of the Commissioners shall be a
certified public accountant. The Commission is empowered to
promulgate rules related to the procedures of the Commission and
the operation of the State Lottery. Such rules and any statutes
enacted to further implement this article shall insure the
integrity, security, honesty, and fairness of the Lottery. The
Commission shall have such additional powers and duties as may be
provided by law.
(b) The Governor shall appoint a Director subject to
confirmation by the Senate who shall serve at the pleasure of the
Governor. The Director shall be qualified by training and
experience to direct the operations of a state-operated lottery.
The Director shall be responsible for managing the affairs of the
Commission. The Director may appoint and prescribe the duties of
no more than four Assistant Directors as the Director deems
necessary. One of the Assistant Directors shall be responsible
for a security division to assure security, integrity, honesty,
and fairness in the operations and administration of the State
Lottery. To fulfill these responsibilities, the Assistant
Director for security shall be qualified by training and
experience, including at least five years of law enforcement
experience, and knowledge and experience in computer security.
(c) The Director shall implement and operate a State Lottery
pursuant to the rules, and under the guidance, of the Commission.
The State Lottery may operate any game procedure authorized by
the commission, except parimutuel racing, social games, and the
games commonly known in Oregon as bingo or lotto, whereby prizes
are distributed using any existing or future methods among adult
persons who have paid for tickets or shares in that game;
provided that, in lottery games utilizing computer terminals or
other devices, no coins or currency shall ever be dispensed
directly to players from such computer terminals or devices.
(d) There is hereby created within the General Fund the Oregon
State Lottery Fund which is continuously appropriated for the
purpose of administering and operating the Commission and the
State Lottery. The State Lottery shall operate as a
self-supporting revenue-raising agency of state government and no
appropriations, loans, or other transfers of state funds shall be
made to it. The State Lottery shall pay all prizes and all of its
expenses out of the revenues it receives from the sale of tickets
or shares to the public and turnover the net proceeds therefrom
to a fund to be established by the Legislative Assembly from
which the Legislative Assembly shall make appropriations for the
benefit of any of the following public purposes: creating jobs,
furthering economic development, financing public education in
Oregon or restoring and protecting Oregon's parks, beaches,
watersheds and critical fish and wildlife habitats. Effective
July 1, 1997, 15% of the net proceeds from the State Lottery
shall be deposited, from the fund created by the Legislative
Assembly under this paragraph, in an education stability fund.
Effective July 1, 2003, 18% of the net proceeds from the State
Lottery shall be deposited, from the fund created by the
Legislative Assembly under this paragraph, in an education
stability fund. Earnings on moneys in the education stability
fund shall be retained in the fund or expended for the public
purpose of financing public education in Oregon as provided by
law. Except as provided in { - subsections (6) and (8) - }
{ + subsection (6) + } of this section, moneys in the education
stability fund shall be invested as provided by law and shall not
be subject to the limitations of section 6, Article XI of this
Constitution. The Legislative Assembly may appropriate other
moneys or revenue to the education stability fund. The
Legislative Assembly shall appropriate amounts sufficient to pay
lottery bonds before appropriating the net proceeds from the
State Lottery for any other purpose. At least 84% of the total
annual revenues from the sale of all lottery tickets or shares
shall be returned to the public in the form of prizes and net
revenues benefiting the public purpose.
(5) Notwithstanding paragraph (d) of subsection (4) of this
section, the amount in the education stability fund created under
paragraph (d) of subsection (4) of this section may not exceed an
amount that is equal to five percent of the amount that was
accrued as revenues in the state's General Fund during the prior
biennium. If the amount in the education stability fund exceeds
five percent of the amount that was accrued as revenues in the
state's General Fund during the prior biennium:
(a) Additional net proceeds from the State Lottery may not be
deposited in the education stability fund until the amount in the
education stability fund is reduced to less than five percent of
the amount that was accrued as revenues in the state's General
Fund during the prior biennium; and
(b) Fifteen percent of the net proceeds from the State Lottery
shall be deposited into the school capital matching
{ - subaccount - } { + fund + } created under
{ - subsection (8) of this section - } { + section 4, Article
XI-O of this Constitution + }.
(6) The Legislative Assembly may by law appropriate, allocate
or transfer any portion of the principal of the education
stability fund created under paragraph (d) of subsection (4) of
this section for expenditure on public education if:
(a) The proposed appropriation, allocation or transfer is
approved by three-fifths of the members serving in each house of
the Legislative Assembly and the Legislative Assembly finds one
of the following:
(A) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the state's General
Fund for the next biennium will be at least three percent less
than appropriations from the state's General Fund for the current
biennium;
(B) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
(C) That a quarterly economic and revenue forecast projects
that revenues in the state's General Fund in the current biennium
will be at least two percent below what the revenues were
projected to be in the revenue forecast on which the
legislatively adopted budget for the current biennium was based;
or
(b) { - If - } The proposed appropriation, allocation or
transfer is approved by three-fifths of the members serving in
each house of the Legislative Assembly and the Governor declares
an emergency.
(7) The Legislative Assembly may by law prescribe the
procedures to be used and identify the persons required to make
the forecasts described in subsection (6) of this section.
{ - (8)(a) There is created a school capital matching
subaccount within the education stability fund created under
paragraph (d) of subsection (4) of this section. - }
{ - (b) The Legislative Assembly may by law appropriate,
allocate or transfer moneys or revenue to the school capital
matching subaccount. - }
{ - (c) To the extent funds are available, the Legislative
Assembly may appropriate, allocate or transfer moneys in the
school capital matching subaccount and earnings on moneys in the
subaccount for the purpose of providing state matching funds to
school districts for capital costs incurred by the school
districts. - }
{ - (9) - } { + (8) + } Notwithstanding paragraph (d) of
subsection (4) of this section, on May 1, 2003, the State
Treasurer shall transfer $150 million from the education
stability fund created under paragraph (d) of subsection (4) of
this section to a fund created by law and known as the State
School Fund. Moneys transferred under this subsection may be used
in the manner provided by law for moneys in the State School
Fund.
{ - (10) - } { + (9) + } Effective July 1, 1999, 15% of the
net proceeds from the State Lottery shall be deposited in a parks
and natural resources fund created by the Legislative Assembly.
Of the moneys in the parks and natural resources fund, 50% shall
be distributed for the public purpose of financing the
protection, repair, operation, and creation of state parks, ocean
shore and public beach access areas, historic sites and
recreation areas, and 50% shall be distributed for the public
purpose of financing the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and
water quality in Oregon. The Legislative Assembly shall not limit
expenditures from the parks and natural resources fund. The
Legislative Assembly may appropriate other moneys or revenue to
the parks and natural resources fund.
{ - (11) - } { + (10) + } Only one State Lottery operation
shall be permitted in the State.
{ - (12) - } { + (11) + } The Legislative Assembly has no
power to authorize, and shall prohibit, casinos from operation in
the State of Oregon.
PARAGRAPH 3. { + The revision proposed by this resolution
shall be submitted to the people for their approval or rejection
at a special election held throughout this state on the same date
as the next primary election. + }
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