72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 331
Corrected Sponsor
Sponsored by Senator METSGER, Representative GARRARD; Senator
FERRIOLI, Representatives BUTLER, HUNT, JOHNSON, MARCH
CHAPTER ................
AN ACT
Relating to the deposit of public funds; amending ORS 182.470,
284.365, 285A.276, 294.035, 295.005, 295.025, 377.840, 421.442,
674.364 and 723.152.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 294.035 is amended to read:
294.035. Subject to ORS 294.040 and 294.135 to 294.155, the
custodial officer may, after having obtained a written order from
the governing body of the county, municipality, political
subdivision or school district, which order shall be spread upon
the minutes or journal of the governing body, invest any sinking
fund, bond fund or surplus funds in the custody of the custodial
officer in the bank accounts, classes of securities at current
market prices, insurance contracts and other investments listed
in this section. However, the custodial officer of any county
shall make no such investment of funds belonging to any
municipality, political subdivision or school district, unless
and until the custodial officer has received a written order from
the governing body of the municipality, political subdivision or
school district to which the funds belong, which order authorizes
the custodial officer to invest the funds, and which order has
been spread upon the minutes or journal of the governing body.
This section, however, shall not limit the authority of the
custodial officer to invest surplus funds in other investments
when the investment is specifically authorized by another
statute. Investments authorized by this section are:
(1) Lawfully issued general obligations of the United States,
the agencies and instrumentalities of the United States or
enterprises sponsored by the United States Government.
(2) Lawfully issued debt obligations of the agencies and
instrumentalities of the State of Oregon and its political
subdivisions that have a long-term rating of A or an equivalent
rating or better or are rated on the settlement date in the
highest category for short-term municipal debt by a nationally
recognized statistical rating organization.
(3) Lawfully issued debt obligations of the States of
California, Idaho and Washington and political subdivisions of
those states if the obligations have a long-term rating of AA or
an equivalent rating or better or are rated on the settlement
Enrolled Senate Bill 331 (SB 331-A) Page 1
date in the highest category for short-term municipal debt by a
nationally recognized statistical rating organization.
(4) Time deposit open accounts, certificates of deposit and
savings accounts in insured institutions as defined in ORS
706.008 { + , in credit unions as defined in ORS 723.006 or in
federal credit unions, if the institution or credit union
maintains + } { - that maintain - } a head office or a branch
in this state.
(5) Share accounts and savings accounts in credit unions in the
name of, or for the benefit of, a member of the credit union
pursuant to a plan of deferred compensation.
(6) Fixed or variable life insurance or annuity contracts as
defined by ORS 731.170 and guaranteed investment contracts issued
by life insurance companies authorized to do business in this
state.
(7) Trusts in which deferred compensation funds from other
public employers are pooled, if:
(a) The purpose is to establish a deferred compensation plan;
(b) The trust is a public instrumentality of such public
employers and described in section (2)(b) of the Investment
Company Act of 1940, 15 U.S.C. 80a-2(b), as amended, in effect on
September 20, 1985, or the trust is a common trust fund described
in ORS 709.170;
(c) Under the terms of the plan the net income from or gain or
loss due to fluctuation in value of the underlying assets of the
trust, or other change in such assets, is reflected in an equal
increase or decrease in the amount distributable to the employee
or the beneficiary thereof and, therefore, does not ultimately
result in a net increase or decrease in the worth of the public
employer or the state; and
(d) The fidelity of the trustees and others with access to such
assets, other than a trust company, as defined in ORS 706.008, is
insured by a surety bond that is satisfactory to the public
employer, issued by a company authorized to do a surety business
in this state and in an amount that is not less than 10 percent
of the value of such assets.
(8)(a) Banker's acceptances, if the banker's acceptances are:
(A) Guaranteed by, and carried on the books of, a qualified
financial institution;
(B) Eligible for discount by the Federal Reserve System; and
(C) Issued by a qualified financial institution whose
short-term letter of credit rating is rated in the highest
category by one or more nationally recognized statistical rating
organizations.
(b) For the purposes of this subsection, 'qualified financial
institution' means:
(A) A financial institution that is located and licensed to do
banking business in the State of Oregon; or
(B) A financial institution that is wholly owned by a financial
holding company or a bank holding company that owns a financial
institution that is located and licensed to do banking business
in the State of Oregon.
(c) A custodial officer shall not permit more than 25 percent
of the moneys of a local government that are available for
investment, as determined on the settlement date, to be invested
in banker's acceptances of any qualified financial institution.
(9)(a) Corporate indebtedness subject to a valid registration
statement on file with the Securities and Exchange Commission or
issued under the authority of section 3(a)(2) or 3(a)(3) of the
Securities Act of 1933, as amended. Corporate indebtedness
Enrolled Senate Bill 331 (SB 331-A) Page 2
described in this subsection does not include banker's
acceptances. The corporate indebtedness must be issued by a
commercial, industrial or utility business enterprise, or by or
on behalf of a financial institution, including a holding company
owning a majority interest in a qualified financial institution.
(b) Corporate indebtedness must be rated on the settlement date
P-1 or Aa or better by Moody's Investors Service or A-1 or AA or
better by Standard & Poor's Corporation or equivalent rating by
any nationally recognized statistical rating organization.
(c) Notwithstanding paragraph (b) of this subsection, the
corporate indebtedness must be rated on the settlement date P-2
or A or better by Moody's Investors Service or A-2 or A or better
by Standard & Poor's Corporation or equivalent rating by any
nationally recognized statistical rating organization when the
corporate indebtedness is:
(A) Issued by a business enterprise that has its headquarters
in Oregon, employs more than 50 percent of its permanent
workforce in Oregon or has more than 50 percent of its tangible
assets in Oregon; or
(B) Issued by a holding company owning not less than a majority
interest in a qualified financial institution, as defined in
subsection (8) of this section, located and licensed to do
banking business in Oregon or by a holding company owning not
less than a majority interest in a business enterprise described
in subparagraph (A) of this paragraph.
(d) A custodial officer shall not permit more than 35 percent
of the moneys of a local government that are available for
investment, as determined on the settlement date, to be invested
in corporate indebtedness, and shall not permit more than five
percent of the moneys of a local government that are available
for investment to be invested in corporate indebtedness of any
single corporate entity and its affiliates or subsidiaries.
(10) Securities of any open-end or closed-end management
investment company or investment trust, if the securities are of
the types specified in subsections (1) to (3), (8) and (9) of
this section and if the investment does not cause the county,
municipality, political subdivision or school district to become
a stockholder in a joint company, corporation or association. A
trust company or trust department of a national bank while acting
as indenture trustee may invest funds held by it as indenture
trustee in any open-end or closed-end management investment
company or investment trust for which the trust company or trust
department of a national bank or an affiliate of the trust
company or trust department of a national bank acts as investment
adviser or custodian or provides other services. However, the
securities of the investment company or investment trust in which
such funds are invested must be of the types specified in
subsections (1) to (3), (8) and (9) of this section and the
investment must not cause the county, municipality, political
subdivision or school district whose funds are invested to become
a stockholder in a joint company, corporation or association. For
purposes of this subsection, companies are affiliated if they are
members of the same affiliated group under section 1504 of the
Internal Revenue Code of 1986 (26 U.S.C. 1504).
(11) Repurchase agreements whereby the custodial officer
purchases securities from a financial institution or securities
dealer subject to an agreement by the seller to repurchase the
securities. The repurchase agreement must be in writing and
executed in advance of the initial purchase of the securities
that are the subject of the repurchase agreement. Only securities
Enrolled Senate Bill 331 (SB 331-A) Page 3
described in subsection (1) of this section shall be used in
conjunction with a repurchase agreement and such securities shall
have a maturity of not longer than three years. The price paid by
the custodial officer for such securities may not exceed amounts
or percentages prescribed by written policy of the Oregon
Investment Council or the Oregon Short Term Fund Board created by
ORS 294.885.
SECTION 2. ORS 295.005 is amended to read:
295.005. As used in ORS 295.005 to 295.165, unless the context
requires otherwise:
(1) 'Certificate of participation' or 'certificate' means a
nonnegotiable document issued by a pool manager to a public
official.
(2) 'Custodian bank' or 'custodian' means the following
institutions designated by the depository bank for its own
account:
(a) The Federal Reserve Bank designated to serve this state, or
any branch of that bank;
(b) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank;
(c) Any insured institution or trust company, as those terms
are defined in ORS 706.008, that is authorized to accept deposits
or transact trust business in this state, provided, however, that
no insured institution or trust company may be a custodian bank
unless it certifies in writing to the State Treasurer that it
will furnish the reports required under ORS 714.075 to the
Director of the Department of Consumer and Business Services.
With the approval of the State Treasurer, a depository bank may
be a custodian bank with respect to its own securities; and
(d) The fiscal agency of the State of Oregon, duly appointed
and acting as such agency pursuant to ORS 288.010 to 288.110.
(3) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian bank to a pool manager describing the securities
deposited with it by a depository bank to secure public fund
deposits.
(4) 'Depository bank' or 'depository' means any insured
institution or trust company, as those terms are defined in ORS
706.008, { + a credit union, as defined in ORS 723.006, the
shares and deposits of which are insured by the National Credit
Union Share Insurance Fund, or a federal credit union, + }
{ - that - } { + if the institution, trust company or credit
union + }maintains a head office or a branch in this state in
the capacity of an insured institution { + , + } { - or - }
trust company { + , credit union or federal credit union + }.
However, an insured institution { + , + } { - or - } trust
company { + , credit union or federal credit union + } is not a
depository bank unless it has:
(a) Certified in writing to the State Treasurer that it will
furnish the reports required under ORS 714.075 to the Director of
the Department of Consumer and Business Services; and
(b) Entered into a written agreement with the State Treasurer
and a custodian that pledges the securities deposited by the
insured institution { + , + } { - or - } trust company { + ,
credit union or federal credit union + } with the custodian as
collateral for deposits of public funds held by the insured
institution { + , + } { - or - } trust company { + , credit
union or federal credit union + }. The agreement shall be
approved by the board of directors or loan committee of the
insured institution { + , + } { - or - } trust company { + ,
credit union or federal credit union + } and shall be
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continuously maintained as a written record of the
institution { + , + } { - or - } company { + , credit union or
federal credit union + }.
(5) 'Pool manager' means:
(a) The State Treasurer;
(b) Any insured institution or trust company, as those terms
are defined in ORS 706.008, { + a credit union, as defined in
ORS 723.006, the shares and deposits of which are insured by the
National Credit Union Share Insurance Fund, or a federal credit
union, + } { - that - } { + if the institution, trust company
or credit union + } is authorized to accept deposits or transact
trust business in this state { + . + } { - ; but - } A
depository bank { - shall - } { + may + } not be a pool
manager with respect to securities that it deposits with its
custodians as collateral for the security of public fund deposits
and { - no - } { + an + } insured institution { + , + }
{ - or - } trust company { + , credit union or federal credit
union + } may { + not + } be a pool manager unless it certifies
in writing to the State Treasurer that it will furnish the
reports required under ORS 714.075 to the Director of the
Department of Consumer and Business Services;
(c) The Federal Reserve Bank designated to serve this state, or
any branch of that bank; or
(d) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank.
(6) 'Public funds' or 'funds' means the funds under the control
or in the custody of a public official by virtue of office, other
than those that, under law other than ORS 295.005 to 295.165,
are:
(a) Deposited for the purpose of meeting the payment of
principal or interest on bonds or like obligations; or
(b) Invested in authorized investments. Funds invested under
ORS 293.701 to 293.820 are invested in authorized investments for
purposes of this paragraph when the funds are transferred by the
State Treasurer to a third party under the terms of a contract
for investment of funds that requires such a transfer.
(7) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of its
agencies and instrumentalities;
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of any state of the United States (A) that are rated
in one of the four highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
state and municipal bonds or, (B) having once been so rated are
ruled to be eligible securities for the purposes of ORS 295.005
to 295.165, notwithstanding the loss of such rating;
(d) Bonds of any county, city, school district, port district
or other public body in the United States payable from ad valorem
taxes levied generally on substantially all property within the
issuing body and that meet the rating requirement or are ruled to
be eligible securities as provided in paragraph (c) of this
subsection;
(e) Bonds of any county, city, school district, port district
or other public body issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the issuing
body has not been in default with respect to the payment of
principal or interest on any of its bonds within the preceding 10
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years or during the period of its existence if that is less than
10 years;
(f) Bond anticipation notes issued, sold or assumed by an
authority under ORS 441.560;
(g) One-family to four-family housing mortgage loan notes
related to property situated in the State of Oregon, which are
owned by a depository bank, no payment on which is more than 90
days past due, and which are eligible collateral for loans from
the Federal Reserve Bank of San Francisco under section 10(b) of
the Federal Reserve Act and regulations thereunder;
(h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
(i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
corporate debt obligations;
(j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has been engaged regularly and continuously for a period of
not less than 10 years in rating corporate debt obligations; and
(k) One-family to four-family housing mortgages that have been
secured by means of a guarantee as to full repayment of principal
and interest by an agency of the United States Government,
including the Government National Mortgage Association, the
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(8) 'Public official' means each officer or employee of this
state or any agency, political subdivision or public or municipal
corporation thereof who by law is made the custodian of or has
control of any public funds.
(9) 'Value' means the current market value of securities.
SECTION 3. ORS 182.470 is amended to read:
182.470. (1) Notwithstanding ORS 670.335, except where
otherwise specifically provided by statute pursuant to ORS
182.462 (5), all moneys collected or received by a board, placed
to the credit of that board and remaining unexpended and
unobligated on the date that the board is established as a
semi-independent state agency, and all moneys collected or
received by a board after the date that the board is established
as a semi-independent state agency, must be deposited into an
account established by that board in a depository bank insured by
the Federal Deposit Insurance Corporation { + or the National
Credit Union Share Insurance Fund + }. In a manner consistent
with the requirements of ORS chapter 295, the chairperson,
president or administrator of a board shall ensure that
sufficient collateral secures any amount of funds on deposit that
exceeds the limits of the { + coverage of the + } Federal
Deposit Insurance { - Corporation's coverage - } { +
Corporation or the National Credit Union Share Insurance
Fund + }. All moneys in the account are continuously appropriated
to the board making the deposit for the purpose of carrying out
the functions of the board.
(2) Subject to the approval of the chairperson, president or
administrator, a board may invest moneys collected or received by
the board. Investments made by a board are:
(a) Limited to investments described in ORS 294.035;
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(b) Subject to the investment maturity date limitations
described in ORS 294.135; and
(c) Subject to the conduct prohibitions listed in ORS 294.145.
(3) Interest earned from any accounts invested under subsection
(2) of this section shall be made available to a board in a
manner consistent with the board's annual budget.
(4) Subject to the approval of the chairperson, president or
administrator, all necessary board expenses shall be paid from
the moneys collected or earned by a board.
(5) As used in this section, 'depository bank' has the meaning
given that term in ORS 295.005.
SECTION 4. ORS 284.365 is amended to read:
284.365. (1) All moneys collected, received or appropriated to
the Oregon Film and Video Office shall be deposited in an account
established in a depository bank insured by the Federal Deposit
Insurance Corporation { + or the National Credit Union Share
Insurance Fund + }. In a manner consistent with the requirements
of ORS chapter 295, the chairperson of the Film and Video Board
shall insure that sufficient collateral secures any amount of
funds on deposit that exceeds the limits of the coverage of the
Federal Deposit Insurance Corporation { + or the National Credit
Union Share Insurance Fund + }. Subject to approval by the
chairperson, the board may invest moneys collected or received by
the office. Investments made by the board are limited to the
types of investments listed in ORS 294.035 (1) to (9). Interest
earned from any amounts invested shall be made available to the
office in a manner consistent with the biennial budget approved
by the board.
(2) Subject to the approval of the director of the office, all
necessary expenses of the office and the board shall be paid from
the moneys collected, appropriated or earned by the office.
(3) The office shall adopt a budget on a biennial basis using
the classifications of expenditures and revenues required by ORS
291.206 (1). The budget shall not be subject to review and
approval by the Legislative Assembly or to modification by the
Emergency Board or the Legislative Assembly. However, the budget
shall be included in the biennial report required by ORS 284.335
(5).
(4) The board shall adopt a budget only after holding a public
hearing on the proposed budget. At least 15 days prior to any
public hearing on the proposed budget, the board shall give
notice of the hearing to all persons known to be interested in
the proceedings of the board and to any person who requests
notice.
(5) All expenditures from the account established for the
office under subsection (1) of this section are exempt from any
state expenditure limitation. The office shall follow generally
accepted accounting principles and keep such financial and
statistical information that is necessary to completely and
accurately disclose the financial condition and financial
operations of the office as may be required by the Secretary of
State.
(6) As used in this section, 'depository bank' has the meaning
given that term in ORS 295.005.
SECTION 5. ORS 285A.276 is amended to read:
285A.276. (1) The Public-Private Partnership is hereby
established as a program of the Oregon Tourism Commission.
(2) The tourism commission shall adopt a biennial budget for
the Public-Private Partnership using the classifications of
expenditures and revenues required by ORS 291.206 (1).
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(3) The tourism commission shall adopt the budget for the
Public-Private Partnership only after holding a public hearing on
the proposed budget. At least 15 days prior to any public hearing
on the proposed budget, the tourism commission shall give notice
of the hearing to all persons known to be interested in the
proceedings of the tourism commission and to any person who
requests notice.
(4) All moneys collected, received or appropriated for the
purposes of the Public-Private Partnership shall be deposited in
an account established in a depository bank insured by the
Federal Deposit Insurance Corporation { + or the National Credit
Union Share Insurance Fund + }. In a manner consistent with the
requirements of ORS chapter 295, the chair of the tourism
commission shall ensure that sufficient collateral secures any
amount of funds on deposit that exceeds the limits of the
coverage of the Federal Deposit Insurance Corporation { + or the
National Credit Union Share Insurance Fund + }. Subject to
approval by the tourism commission, the commission may invest
moneys collected or received for the Public-Private Partnership.
Investments made by the tourism commission are limited to the
types of investments listed in ORS 294.035 (1) to (9). Interest
earned from any amounts invested shall be made available to the
tourism commission in a manner consistent with the biennial
budget for the Public-Private Partnership.
(5) Moneys in the account established under subsection (4) of
this section for the Public-Private Partnership shall consist of:
(a) Gifts, grants and other contributions from private and
nonprofit entities;
(b) Grants, loans and other revenue transfers from public
entities, including the State of Oregon;
(c) Interest earned on moneys in the account; and
(d) Revenues generated by the tourism commission or by Oregon
Tourism Program activities.
(6) Notwithstanding ORS chapter 279, all expenditures from the
account established under subsection (4) of this section shall be
in conformance with the duties of the tourism commission set
forth in ORS 285A.264. All expenditures from the account are
exempt from any state expenditure limitation. The Public-Private
Partnership is exempt from ORS 291.050 to 291.060. The tourism
commission shall follow generally accepted accounting principles
and keep such financial and statistical information that is
necessary to completely and accurately disclose the financial
condition of the account as may be required by the Secretary of
State.
SECTION 6. ORS 295.025 is amended to read:
295.025. (1) Any public official may retain undeposited such
reasonable cash working fund as is fixed by the governing body of
the political subdivision or public corporation for which the
public official acts. Except to the extent of such cash working
fund, each public official shall deposit public funds in the
custody or control of the public official in one or more
depositories currently qualified pursuant to ORS 295.005 to
295.165. { + The public official may not have on deposit in any
one depository bank that is a credit union or federal credit
union an aggregate sum in excess of $100,000. With respect to
other depository banks, + } the public official, without
procuring certificates of participation issued by the pool
manager of the depository in an amount equal to the excess
deposit, shall not have on deposit in any one depository bank and
its branches a sum in excess of:
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(a) The amount insured by the Federal Deposit Insurance
Corporation; or
(b) For any amount over the amount insured by the Federal
Deposit Insurance Corporation, the amount insured or guaranteed
by private deposit insurance or a deposit guaranty bond issued by
an insurance company rated A- or better by a recognized insurance
rating service.
(2) Whenever a public official holds a certificate of
participation issued by a pool manager in an amount exceeding the
amount required by subsection (1) of this section, upon the
written request of the depository bank the public official shall
surrender it to the pool manager or direct the pool manager in
writing to cancel it in whole or in a designated part.
(3) Compliance with ORS 295.005 to 295.165 relieves the public
official of personal liability on account of the loss of the
public funds in the custody or control of the public official.
SECTION 7. ORS 377.840 is amended to read:
377.840. (1) All moneys collected or received by the Travel
Information Council shall be deposited into a Travel Information
Council account established in a depository bank insured by the
Federal Deposit Insurance Corporation { + or the National Credit
Union Share Insurance Fund + }. In a manner consistent with the
requirements of ORS chapter 295, the chairperson of the council
shall insure that sufficient collateral secures any amount of
funds on deposit that exceeds the limits of the { + coverage of
the + } Federal Deposit Insurance { - Corporation's
coverage - } { + Corporation or the National Credit Union Share
Insurance Fund + }. Subject to the chairperson's approval, the
council may invest moneys collected or received by the council.
Investments made by the council are limited to the types of
investments listed in ORS 294.035. Interest earned from any
amounts invested shall be made available to the council in a
manner consistent with the council's approved biennial budget.
(2) Subject to the approval of the chairperson or director of
the Travel Information Council, all necessary council expenses
shall be paid from the moneys collected or earned by the council.
(3)(a) The Travel Information Council shall adopt a budget on a
biennial basis using the classifications of expenditures and
revenues required by ORS 291.206 (1). However, the budget shall
not be subject to review and approval by the Legislative Assembly
or to future modification by the Emergency Board or Legislative
Assembly.
(b) The council shall adopt a budget only after a public
hearing thereon. At least 15 days prior to any public hearing on
the budget, the council shall give notice of the hearing to all
persons known to be interested in the proceedings of the council
and to any person who requests notice.
(4) All expenditures from the Travel Information Council
account are exempt from any state expenditure limitation. The
Travel Information Council shall follow generally accepted
accounting principles and keep such other financial and
statistical information as may be necessary to completely and
accurately disclose the financial condition and financial
operations of the council as may be required by the Secretary of
State.
(5) As used in this section, 'depository bank' has the meaning
given in ORS 295.005.
SECTION 8. ORS 421.442 is amended to read:
421.442. (1) The Department of Corrections may create accounts
and subaccounts as reasonably required to discharge the functions
Enrolled Senate Bill 331 (SB 331-A) Page 9
and duties prescribed by section 41, Article I of the Oregon
Constitution, including accounts and subaccounts for the deposit
of income generated from prison work programs. Accounts and
subaccounts created under this subsection shall be maintained
separate and distinct from the General Fund. Moneys credited to
the accounts and subaccounts are continuously appropriated to the
department for the purpose of implementing, maintaining and
developing prison work programs. Moneys in the department
accounts or subaccounts may be transferred to the inmate injury
component of the Insurance Fund for the payment of expenses
therefrom authorized by law. Moneys in the accounts or
subaccounts may be invested as provided in ORS 293.701 to 293.790
and as authorized by ORS 421.305. Earnings on the investment of
moneys in the accounts or subaccounts shall be credited to the
respective account or subaccount.
(2) Oregon Corrections Enterprises may create accounts and
subaccounts as reasonably required to discharge the functions and
duties prescribed by section 41, Article I of the Oregon
Constitution, and ORS 192.502, 421.305, 421.312, 421.344 to
421.367, 421.412, 421.444 and 421.445 and this section, including
accounts and subaccounts for the deposit of income generated from
prison work programs. All moneys collected or received by Oregon
Corrections Enterprises shall be deposited into an account or
subaccounts established by Oregon Corrections Enterprises in a
depository bank insured by the Federal Deposit Insurance
Corporation { + or the National Credit Union Share Insurance
Fund + }. The administrator shall ensure that sufficient
collateral secures any amount of funds on deposit that exceeds
the limits of the { + coverage of the + } Federal Deposit
Insurance { - Corporation's coverage - } { + Corporation or
the National Credit Union Share Insurance Fund + }. All moneys in
the account or subaccounts are continuously appropriated to
Oregon Corrections Enterprises for the purpose of implementing,
maintaining and developing prison work programs. Moneys in the
accounts or subaccounts may be invested as provided in ORS
293.701 to 293.790 and as authorized by ORS 421.305. Earnings on
the investment of moneys in the accounts or subaccounts shall be
credited to the respective account or subaccount.
(3) Moneys credited to or received by inmate work programs
conducted by the department may not be commingled with moneys
credited to or received by inmate work programs conducted by
Oregon Corrections Enterprises.
(4) Moneys in the accounts or subaccounts are available for
implementing, maintaining and developing prison work and
on-the-job training programs, including, but not limited to:
(a) The purchase of all necessary machinery and equipment for
establishing, equipping and enlarging prison industries;
(b) The purchase of raw materials, the payment of salaries and
wages and all other expenses necessary and proper in the judgment
of the Director of the Department of Corrections or the
administrator of Oregon Corrections Enterprises in the conduct
and operation of prison industries; and
(c) Department transfers to the inmate injury component of the
Insurance Fund from the payment of expenses authorized by law.
(5) No part of the accounts or subaccounts may be expended for
maintenance, repairs, construction or reconstruction, or general
or special expenses of a Department of Corrections institution,
other than for prison work and on-the-job training programs.
(6) The transfers referred to in subsections (1) and (4)(c) of
this section may be authorized by the Legislative Assembly, or
Enrolled Senate Bill 331 (SB 331-A) Page 10
the Emergency Board if the Legislative Assembly is not in
session, whenever it appears to the Legislative Assembly or the
board, as the case may be, that there are insufficient moneys in
the inmate injury component of the Insurance Fund for the payment
of expenses authorized by law.
SECTION 9. ORS 674.364 is amended to read:
674.364. (1) Except where otherwise specifically provided by
ORS 674.850 and 674.990, all moneys collected or received by the
Appraiser Certification and Licensure Board, placed to the credit
of the board and remaining unexpended and unobligated on August
21, 2001, and all moneys collected or received by the board after
August 21, 2001, shall be deposited into an account established
by the board in a depository bank insured by the Federal Deposit
Insurance Corporation { + or the National Credit Union Share
Insurance Fund + }. In a manner consistent with the requirements
of ORS chapter 295, the chairperson of the board shall ensure
that sufficient collateral secures any amount of funds on deposit
that exceeds the limits of the { + coverage of the + } Federal
Deposit Insurance
{ - Corporation's coverage - } { + Corporation or the
National Credit Union Share Insurance Fund + }. All moneys in the
account are continuously appropriated to the board for the
purpose of carrying out the functions of the board.
(2) Subject to the approval of the chairperson, the board may
invest moneys collected or received by the board. Investments
made by the board are:
(a) Limited to investments described in ORS 294.035;
(b) Subject to the investment maturity date limitations
described in ORS 294.135; and
(c) Subject to the conduct prohibitions listed in ORS 294.145.
(3) Interest earned from any moneys invested under subsection
(2) of this section shall be made available to the board in a
manner consistent with the board's annual budget.
(4) Subject to the approval of the chairperson, all necessary
board expenses shall be paid from the moneys collected or earned
by the board.
(5) As used in this section, 'depository bank' has the meaning
given that term in ORS 295.005.
SECTION 10. ORS 723.152 is amended to read:
723.152. In addition to the powers conferred by the general
corporation law a credit union may, subject to the restrictions
and limitations contained in this chapter and its bylaws:
(1) Make contracts.
(2) Sue and be sued.
(3) Adopt and use a common seal and alter same.
(4) Acquire, lease, hold and dispose of property, either in
whole or in part, necessary or incidental to its operations.
(5) At the discretion of the board of directors, require the
payment of an entrance fee or annual membership fee, or both, of
any person admitted to membership.
(6) Receive savings from its members in the form of various
classes of shares, deposits or deposit certificates, deposit
accounts or special-purpose thrift accounts.
(7) Receive from its members or from another credit union
deposits or deposit certificates, deposit accounts or various
classes of shares payable on nonnegotiable request.
(8) Lend its funds to its members and credit unions as provided
in this chapter.
(9) Acquire and lease personal property at the request of a
member who wishes to lease the property on terms requiring
Enrolled Senate Bill 331 (SB 331-A) Page 11
payment, during the term of the lease, of rents that exceed the
total expenditures made by the credit union for the acquisition,
ownership, financing and protection of the property. Rents may
include residual value payments that are the obligation of a
responsible third party.
(10) Borrow from any source in accordance with policy
established by the board of directors and issue debentures
pursuant to a plan approved by the Director of the Department of
Consumer and Business Services. The debentures shall be
subordinate to the shares and deposits of the credit union.
(11) Discount and sell any eligible obligations, subject to
rules adopted by the Director of the Department of Consumer and
Business Services.
(12) Sell all or substantially all of its assets or purchase
all or substantially all of the assets of another credit union,
subject to the approval of the director.
(13) Invest surplus funds as provided in this chapter.
(14) Make deposits in legally chartered banks, savings banks,
savings and loan associations, trust companies and credit unions.
(15) Assess charges to members in accordance with the bylaws
for failure to meet promptly their obligations to the credit
union.
(16) Hold membership in other credit unions organized under
this chapter or other state or federal laws, and in other
associations and organizations composed of credit unions.
(17) Declare dividends, pay interest on deposit and deposit
certificate accounts and pay interest refunds to borrowers as
provided in this chapter.
(18) Offer products and services reasonably related to the
purposes of a credit union as set forth in ORS 723.006.
(19) Receive deposits from the federal government or this
state, or any agency or political subdivision thereof { - , when
payable for the accounts of members - } .
(20) Make donations or contributions to any civic, charitable,
political or community organization as authorized by the board of
directors, subject to any rules adopted by the director.
(21) Act as a custodian of qualified pension funds of members
if permitted by federal law.
(22) Purchase or make available insurance for its directors,
officers, agents, employees and members.
(23) Allow its members to use share accounts, deposit accounts
or deposit certificate accounts as share draft accounts as
provided in ORS 723.434.
(24) Provide digital signature verification or other electronic
authentication services to its members.
(25) Act as trustee or custodian for members of individual
retirement accounts or other arrangements established pursuant to
sections 408 and 530 of the Internal Revenue Code, deferred
compensation accounts established pursuant to section 457 of the
Internal Revenue Code, or any other qualified individual
retirement account established pursuant to the provisions of the
federal Employee Retirement Income Security Act of 1974, provided
that the trust or custodial agreement establishing the
arrangement requires all funds subject to the arrangement to be
invested exclusively in share accounts in the credit union. The
State of Oregon, or the applicable instrumentality or
municipality, shall be deemed to be a member with respect to such
deposits, except that the state or other instrumentality or
municipality shall not be entitled to vote, hold office or
Enrolled Senate Bill 331 (SB 331-A) Page 12
otherwise participate in the management or operation of the
credit union.
(26) Indemnify its directors, officers, employees and committee
members or other volunteers in accordance with the provisions of
its articles, bylaws and the indemnification provisions of ORS
chapter 60.
(27) Exercise other powers that are necessary to carry out the
credit union's purpose.
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Passed by Senate April 3, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 3, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 331 (SB 331-A) Page 13
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 331 (SB 331-A) Page 14